FX.co ★ EUR/USD analysis for December 01 2020 - Potetnial for the second downside leg on the EUR and test of 1.1925

Prior -0.3%

• Core CPI +0.2% vs +0.2% y/y expected
• Prior +0.2%

Euro area inflation continues to keep more subdued with the readings unchanged from November, as core inflation stays at a record low. The ECB will be taking added action next month to deal with the fallout from the virus crisis and they will be hoping it will inadvertently spur higher price pressures going into next year as well.=

Further Development

Analyzing the current trading chart of EUR/USD, I found that the buyers got exhausted today and the downside roattion would be probably to correct strong upside movement from recent few days.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Silver and PLatinum today and on the bottom Ethanol and VIX.

Key Levels:

Resistance: 1,1985

Support levels: 1,1926 and 1,1914