According to Karen Jones, analyst at Commerzbank, EUR/USD has started the New Year under pressure as it consolidates recent gains.

"The market is holding just below a critical juncture - namely the 55 week ma at 1.1197 and the 2019-2020 down channel at 1.1215 and we are not surprised to see consolidation here. With dips lower well supported by the 55 and 20 day ma at 1.1094/1.1064 we look for the market to hold here and recover. Above the 1.1240 recent high lies the 200 week ma at 1.1360, and this represents a critical break point on the topside from a medium term perspective. Dips lower will ideally hold over the 1.1066 20th December low and the 1.1043 3 month support line and while above here our outlook stays positive. Failure would target the 1.0981 29th November low."