EUR/USD to test stubborn support at 1.1970

The EUR/USD pair has fallen to 1.1982, a fresh 2021 low, and struggles to recover above the 1.2000 threshold. Bears hold the grip, now eyeing 1.1970 support, FXStreet’s Chief Analyst Valeria Bednarik reports. 

Key quotes

“The EU published December Retail Sales which came in better than expected, rising by 2% in the MoM and 0.6% when compared to a year earlier.” 

“Initial Jobless Claims decreased to 779K, beating expectations. Q4 Nonfarm Productivity contracted 4.8%, while the Unit Labor Cost in the same period rose 6.8% vs 3.9% expected.”

“In the 4-hour chart, the 20 SMA has gained bearish momentum, now below 1.2060, a major Fibonacci resistance.”

“A strong support level comes at 1.1970, as the level represents the 50% retracement of the November/January rally. A steeper decline expected on a break below it.”