FX.co ★ EUR/USD analysis for January 18 2021 - Bullish divergece on the 4H time-frame and potential reversion to the mean towards 1.2115

• Prior was 264.0K
• Starts down 12.6%
• Single-detached homes -6.1%
• Multiple starts -15%

A 12.6% drop sounds bad but starts are volatile and December in Canada is a tough month to seasonally adjust for, because so much of construction is shut down.

Further Development

Analyzing the current trading chart of EUR/USD, I found that sellers got exhausted on the way down at the price of 1,2060.

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Lean Hogs and Feeder Cattle today and on the bottom Natural Gas and Lumber.

EUR is slightly negative for the day but with no strong momentum.

Key Levels:

Resistance: 1,2115

Support level: 1,2060