EUR/USD analysis for January 27 2021 - Strong downside on the EUR and potential for the test of downside target at 1.2055

US MBA mortgage applications w.e. 22 January -4.1% vs -1.9% prior

Prior -1.9%

Market index 907.6 vs 946.8 prior Purchase index 334.2 vs 348.2 prior Refinancing index 4,261.5 vs 4,484.2 prior 30-year mortgage rate 2.95% vs 2.92% prior

The drop here stems from a decline in purchases and refinancing activity in the past week, but comes on the back of big surge to start the new yeartwo weeks back. As such, housing market conditions are still fairly robust and this is a mere moderation of that.

Further Development

Analyzing the current trading chart of EUR/USD, I found that sellers are in control and as I predicted the downside cycle is active with potential for the test of the support levels at 1,2075 and 1,2055.

Key Levels:

Resistance: 1,2170

Support levels: 1,2075 and 1,2055.