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The EUR/USD pair has moved back above 1.21. The broad USD is now likely to be under further pressure amid risk-on. Market may now shift to focus on EUR-positives like the narrowing BTP-Bund spread, and target 1.2150 for the EUR/USD, per OCBC Bank.

Key quotes

“The EUR/USD’s successive breaches of resistance levels at 1.2050 and 1.2100 leaves the pair in a bullish construct.”

“The market now seemed happy to overlook the EUR-negatives (like pandemic spread and slow vaccination progress) as the USD is now out of favour.” 

“Next northbound target at 1.2150 for now, with a test of the January high cannot be ruled out.”