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The EUR/USD pair is moving around 1.0620 (Murrey level [7/8]) and cannot move away from it yet, as investor activity remains low during the holiday period.

Yesterday, the price tried to rise against the backdrop of the announcement of the Chinese authorities that on January 8, the need to undergo quarantine for citizens staying in the country will be lifted, which will increase the flow of tourists to the country and help intensify business contacts, which will ultimately contribute to the recovery of the Chinese and world economies. The positive momentum was quickly exhausted, as the large-scale lifting of restrictive measures, accompanied by an increase in the incidence of coronavirus, caused market fears of a possible start of a new wave of the pandemic already on a global scale. To prevent the spread of COVID-19, some countries, such as Japan and the United States, have begun implementing quarantines for people arriving from China. Uncertainty will persist until the end of next week when the December data from the US labor market will be published: strong statistics will give the US Federal Reserve another argument in favor of further monetary policy tightening.

The medium-term uptrend remains. However, the key “bullish” level is 1.0742 (Murrey level [8/8], Fibonacci correction 61.8%), the breakout of which will give the prospect of further growth to 1.0864 (Murrey level [+1/8]), 1.0986 (Murrey level [+2/8]). After the consolidation below the middle line of Bollinger bands and the reversal level 1.0498 (Murrey level [6/8]), the decline may resume to 1.0253 (Murrey level [4/8]) and 1.0131 (Murrey level [3/8]).

Technical indicators point to the continued uptrend: Bollinger bands and Stochastic are reversing upwards, while the MACD histogram is stable in the positive zone.

Resistance levels: 1.0742, 1.0864, 1.0986. | Support levels: 1.0498, 1.0253, 1.0131.