Dip-buyers showed up yesterday on our 1.2080 support as expected, rallying around 90 pips from three-day lows, after the greenback struggled to preserve its strong recovery gains amid expectations that the US lawmakers will agree to an emergency coronavirus stimulus plan. However, fear of additional easing by the ECB capped the upside and triggered some selling around 1.2150s, pushing the pair to settle around the 1.21 level. Today, the broader market risk sentiment will continue to play a key role in influencing the price dynamics, therefore we are looking to buy any pullback towards 1.2080 or even the 1.2040 level.
Support: 1.2080 / 1.20
Resistance: 1.2180/ 1.2250
