The Euro gaped down on Monday morning as the global risk sentiment took a hit amid fears of new COVID-19 variant detection in multiple European countries. This provided a strong lift to the US dollar’s safe-haven status pushing the single currency lower by 100 pips. However, the FDA granting emergency use approval for Moderna’s COVID-19 vaccine over the weekend, will probably cap any further gains on the greenback, as buying the dips around the 50-SMA remains our favorite strategy for now.
Support: 1.2180 / 1.2120
Resistance: 1.2210 / 1.2270
