EUR/USD snaps 4-day winning streak, gains more than 9% in 2020

EUR/USD is posting modest daily losses on Thursday.
Profit-taking ahead of the New Year holiday seems to be weighing on the EUR.
EUR/USD is up more than 2% for the second straight month in December.

Eren Sengezer FXStreet

After closing the previous four trading days in the positive territory, the EUR/USD pair edged slightly lower on the last day of 2020 and was last seen losing 0.26% on the day at 1.2265. In November, the pair gained more than 2% and is advancing 2.8% in December. For the year, EUR/USD is up 9.3%.

Earlier in the day, the data from the US showed that Initial Jobless Claims fell by 19,000 to 787,000 in the week ending December 26 and came in much better than the market expectation of 833,000. Nevertheless, the market reaction to this report was largely muted.

The US Dollar Index, which tracks the greenback's performance against a basket of six major currencies, is virtually unchanged on the day at 89.67.

EUR/USD 2021 outlook

EUR/USD Price Forecast 2021: Euro-dollar long-term bullish breakout points to 1.2750.

"Bulls will get discouraged if the pair loses the 1.2000 threshold, but won’t give up unless the pair falls below 1.1600 in the first quarter of the year, as it will return to levels below the long-term trend line," says FXStreet Chief Analyst Valeria Bednarik. "In such a case, lower lows will come into play, with the pair poised to extend its decline towards 1.0351, the multi-decade low posted in December 2016."

Technical levels to watch for

EUR/USD

Overview
Today last price	1.2262
Today Daily Change	-0.0030
Today Daily Change %	-0.24
Today daily open	1.2292

Trends
Daily SMA20	1.2177
Daily SMA50	1.1973
Daily SMA100	1.1885
Daily SMA200	1.1534

Levels
Previous Daily High	1.231
Previous Daily Low	1.2247
Previous Weekly High	1.2257
Previous Weekly Low	1.213
Previous Monthly High	1.2003
Previous Monthly Low	1.1603
Daily Fibonacci 38.2%	1.2286
Daily Fibonacci 61.8%	1.2271
Daily Pivot Point S1	1.2256
Daily Pivot Point S2	1.222
Daily Pivot Point S3	1.2193
Daily Pivot Point R1	1.2319
Daily Pivot Point R2	1.2346
Daily Pivot Point R3	1.2382

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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