The Euro remains bid above 1.1850 as the hopes for coronavirus vaccine and the possibility of the global economy returning to normalcy in 2021 continue to weigh over the safe-haven dollar. Apart from the improved risk appetite, the currency pair could benefit from growing odds of additional easing by the FED. Chairman Powell will have to announce more monetary stimulus between now and when the vaccines are rolled out in sufficient quantity to allow the US economy to recover. That’s because the US lawmakers will probably have a tough time approving a fiscal stimulus with the Congress split and President Trump refusing to concede. As a result, our 1.19 target remains intact for now.
Support: 1.1850 / 1.18
Resistance: 1.1880/ 1.19
