The Euro touched our 1.20 target yesterday before retracing all the way back to 1.1920. However, the dip buyers showed up and pushed the pair back above 1.1950, as vaccine optimism boosted the US equity market to all-time highs, weighing over the dollar. Markets still believe the Fed would boost stimulus to counter the recent resurgence of coronavirus, especially after Powell said yesterday that the US economy remains in a “damaged and uncertain state”. Today’s strategy same as yesterday’s, buying any dip for a potential move above 1.20.
Support: 1.1890 / 1.1850
Resistance: 1.1950/ 1.20
