The pair declined significantly over the past week as the demand for risk assets falls, ahead of Joe Biden’s inauguration and the ECB monetary policy meeting. If the negative sentiment in the markets persists, the pair will be highly likely to resume decline.
Technical side:
The price is located below the middle Bollinger band, below SMA 5 and SMA 14. RSI is below the 50% level and is moving horizontally. Stoch are turning up in the oversold zone.
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Trading idea:
The pair may recover locally to 1.2100, but it’s most likely to decline to 1.2000, either from this mark or after dropping below 1.2065.