The dollar remains well supported keeping the Euro below the 200-SMA, amid higher US yields after President-elect Joe Biden announced a $1.9 trillion covid relief plan. Meanwhile, the ECB Meeting Accounts showed that the Governing Council is concerned about the euro’s exchange rate and its potential negative impact on the inflation outlook. Our short-term bias turns negative for now on the single currency, as we expect further weakness on the pair if the bulls couldn’t break back above 1.2175.
Support: 1.2140 / 1.21
Resistance: 1.2175 / 1.2215
