EUR/USD Outlook (07 January 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD broke above the key level of 1.23.

The German Preliminary CPI m/m data (Actual: 0.5%, Forecast: 0.6%, Previous: -0.8%) released yesterday indicated a recovery in inflation in December.

The French Preliminary CPI m/m data (Actual: 0.2%, Forecast: 0.4%, Previous: 0.2%) released yesterday indicated continued increase in inflation in December.

The eurozone CPI flash estimate y/y data will be released later at 1800 (SGT).

• CPI Flash Estimate y/y (Forecast: -0.2%, Previous: -0.3%)
  
• Core CPI Flash Estimate y/y (Forecast: 0.2%, Previous: 0.2%)
  

EUR/USD’s next support zone is at 1.21800 and the next resistance zone is at 1.24800.
Look for buying opportunities of EUR/USD.