On the first day of the week, the EUR/USD inched lower on the chart due to adverse circumstances coming from Germany. It is the fourth day when the EURUSD continuously showed the red mark on the graph.

The forthcoming German economic data releases are weakening the EURUSD day after day, which has also broken the momentum of the rising wave and led to a new drop-off course.

First, the Zentrum für Europäische Wirtschaftsforschung plans to release the Current Situation on January 19, 2021. According to economists’ view, it might register the reading of -68 in January compared to the month before data of -66.

The Economic Sentiment test the sentiment of institutional investors, representing the disparity between the positive share of investors and the pessimistic share of analysts. An optimistic view is usually positive (or bullish) for the EUR, while a pessimistic view is negative (or bearish).

Second, the Harmonized Consumer Price Index of December, which going to release on January 19, 2021, which, according to the perspective of economists reported at -0.7% index while bearing no change as compared to the month before data.

A consumer price index is base on a statistical methodology which harmonized across all EU member states. HICP is a price measure used by the EU Governing Council for quantitatively defining and assessing price stability in the euro area as a whole.

The EURUSD introduced itself at a value of 1.2068 at present. At 1.1915, the price has the degree of horizontal support, which drives the price above that given location.

Conclusion

Buying the pair at current levels could be a lucrative step in short to medium term trading, considering the overall price action of the EUR/USD in recent days.