Gold continues to be caught in a battle around key technical levels
Gold is trading back towards its 100-hour moving average (red line) as buyers wrestle back some near-term control. However, that doesn’t mean all too much considering that price action appears to be stuck in a consolidation phase between $1,830 and $1,860.

The euro advances after the German ZEW survey data shows that investor sentiment continues to override lockdown pessimism
key technical support levels
Of note, the push higher during the session has also seen buyers take out the near-term trendline resistance in the latest swing move lower and now contesting a potential break of the 23.6 retracement level

Does the early reflation narrative have more legs to run to start the year?
The Georgia runoffs, Fed talk, and Biden’s stimulus plan were key components to get the market to start the new year but have we finally run out of fuel on that front – at least for now?

Latest data released by ZEW – 19 January 2021
This reflects the more optimistic investor sentiment as well but we’ll see how well this will hold up in light of restrictions set to be prolonged further to April in all likelihood.