- EUR / USD is trading near 1.2140 after finding support around 1.21 earlier in the day.
- The repeated defense of 1.21 contradicts analysts’ forecasts of a pre-ECB pullback.
The EUR / USD pair continues to maintain the psychological support of 1.21 for the third consecutive day despite the pessimistic expectations of the European Central Bank (ECB).
With the currency pair rising 3% since November amid the coronavirus resurgence, the central bank may feel pressure to bring the euro down. As such, some analysts were expecting a pullback for the pair before Thursday’s event.
“While stronger-than-expected German data keeps EUR / USD close to its 2-1 / 2-year high, we are still awaiting profit-taking before the monetary policy announcement,” noted Kathy Lien of BK Asset Management.
However, so far the sellers have been unable to set the EUR / USD pair below the 1.21 support. That has neutralized the immediate bearish case.
At the time of writing, the pair is moving higher and trading near 1.2140, climbing above the previous day’s high and looking to extend the move towards 1.2178 (December 4 high).
On the other hand, a drop below the 1.21 region could point to support at 1.2058 (10-day SMA) and 1.2011 (September 1 high).
EUR / USD daily chart
EUR / USD technical levels
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