The pair in undergoing a price correction.

Today we expect the release of the index of economic activity (ZEW) from Germany - this news may affect the market.

In the United States after an agreement between the Democrats and the Republicans the government resumed its work and at the moment its funding is agreed upon by February 8. American stock indices showed growth. The Dow Jones index rose by 0.55% and NASDAQ showed a growth of +0.98%.

The dollar index stopped the decline and returned to the level of 90.33 after the news of the resumption of the work of the government.

Yesterday the international economic forum in Davos started. The IMF raised its expectations about the growth of global GDP from 3.7% to 3.9%.

We do not expect the release of important data from the US, so we will look at our chart from the point of view of technical analysis.

Technical indicators indicate that the price has moved away from the maximum, and the Stochastic has left the overbought zone. The RSI went down and we expect a medium-term downward movement within the correction.

We advise you to go with short positions with small Stop-Loss, and medium-term objectives to reach the support levels near the markings of 1.2180 and 1.2120.