- EUR / USD is trading negative near the 1.2150 region.
- The USD continues to strengthen aided by higher yields in the United States.
The selling bias around the common currency remains firm and keeps EUR / USD under pressure near the 1.2150 region at the start of the American session on Monday.
EUR / USD focuses on US data and returns.
EUR / USD is still on track close negative for the third consecutive dayalways in the context of a general rally in the US dollar.
As usual in recent days, the (high) likelihood of additional US fiscal stimulus under a Democratic presidency supports the vision of higher inflation in the medium / long term, which in turn morphs into further upward pressure on US bond yields and benefits the US dollar.
With regard to the economic data of the euro area, the Sentix index improved to 1.3 points in the current month, showing a better mood in investor morale.
Later in the day, ECB President C. Lagarde will participate in a panel discussion at the One Planet Summit in Paris. Across the Atlantic, FOMC voter R. Bostic has a speech scheduled.
What can we expect around the EUR?
EUR / USD bullish momentum petered out at the 1.2350 region earlier in the month. Despite the downward correction, the outlook for EUR / USD remains constructive and appears supported by prospects for a strong recovery in the region (and abroad), which in turn is underpinned by additional fiscal stimulus. by the Fed and the ECB. Furthermore, real interest rates continue to favor the euro area versus the US, which is also another factor supporting the common currency.
EUR / USD levels
At the time of writing, the EUR / USD pair is back 0.57% on the day, trading at 1.2149. Immediate support is at 1.2129 (Dec 21, 2020 low), followed by 1.2058 (Dec 9, 2020 low) and 1.2032 (23.6% Fibonacci retracement of the 2017-2018 move). On the other hand, a break of 1.2349 (high of January 6), would target 1.2413 (high of April 17, 2018) on the way to 1.2476 (high of March 27, 2018).
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