EUR/USD: 1.23 emerges as resistance ahead of Georgia runoff elections

EUR/USD struggles to establish a foothold above 1.23.
Technical studies and market positioning show scope for a pullback.
Democratic sweep in Georgia elections could bring stronger buying pressure.

Omkar Godbole FXStreet Contributor

EUR/USD failed to keep gains above 1.23 for the third consecutive trading day on Monday.

The repeated rejection above the psychological level, coupled with the bearish divergence of the 14-day Relative Strength Index (RSI) and the negative or bearish reading on the daily chart MACD histogram suggests scope for a pullback.

Market positioning validates the technical picture. "The latest IMM data show net dollar shorts climbed to $30.4 billion in the week ended Dec. 29 while net EUR/USD longs stood at $21.875 billion, reflecting the market's view that the trend will continue in 2021," according to Reuters.

As such, 1.23 is now the level to beat for the bulls. The breakout could happen if Democrats sweep the Georgia elections for both Senate seats due on Tuesday. That's because a Democrat-controlled Senate could pave the way for more significant fiscal stimulus, according to Goldman Sachs. Further, the market is currently pricing a Republican win in at least one race.

Data-wise, the focus would be on the German Unemployment Rate, due at 08:55 GMT, and the US ISM Manufacturing, scheduled for release at 15:00 GMT.

At press time, the pair is trading near 1.2272, representing a 0.19% gain on the day. The dollar came under pressure in Asia after the US Food and Drug Administration said that two different mRNA vaccines now show remarkable effectiveness of about 95% in preventing Covid-19 infection in adults.

Technical levels

EUR/USD

Overview
Today last price	1.2272
Today Daily Change	0.0023
Today Daily Change %	0.19
Today daily open	1.2249

Trends
Daily SMA20	1.2192
Daily SMA50	1.1996
Daily SMA100	1.1897
Daily SMA200	1.1552

Levels
Previous Daily High	1.231
Previous Daily Low	1.2231
Previous Weekly High	1.231
Previous Weekly Low	1.2181
Previous Monthly High	1.231
Previous Monthly Low	1.1924
Daily Fibonacci 38.2%	1.228
Daily Fibonacci 61.8%	1.2261
Daily Pivot Point S1	1.2217
Daily Pivot Point S2	1.2184
Daily Pivot Point S3	1.2138
Daily Pivot Point R1	1.2296
Daily Pivot Point R2	1.2342
Daily Pivot Point R3	1.2375

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold rebounds ahead of US ADP, will it last?

Gold finds renewed Asian bids and retests $5,230 early Wednesday after the heavy sell-off on Tuesday. The US Dollar stands tall amid escalating Middle East tensions and reduced dovish Fed expectations. Gold defends $5,000 or 50% Fibo level after facing rejection at the 78.6% Fibo resistance at $5,342 amid bullish RSI.

Bitcoin, Ethereum and Ripple struggle for direction as consolidation persists

Bitcoin, Ethereum and Ripple prices trade with a cautious tone at the time of writing on Wednesday as upside momentum continues to fade across the broader crypto market. BTC remains within a parallel channel, ETH struggles below key resistance, while XRP remains fragile within a descending channel. These top three cryptocurrencies by market capitalization continue to struggle to establish a directional bias amid the consolidation phase.

Energy shock 2.0: Why rising Gas prices could hit the Euro

Even without a confirmed, sustained disruption, the mere risk to a key global energy chokepoint is enough to inject a significant premium into European Gas markets. And for the Euro, that matters.

Ripple falters amid sell-off jitters and negative funding rates

Ripple (XRP) has come under pressure, drifting lower to $1.35 at the time of writing on Tuesday. The over 2% correction looks poised to erase the previous day’s gains, which lifted the remittance token to $1.42.