EUR/USD: Three reasons to break the critical 1.2150 resistance

Valentine's Day is over but there is love in the air for further gains as three positive factors are set to drive the EUR/USD pair above the 1.2150 resistance, Yohay Elam, an Analyst at FXStreet, reports.

Key quotes

“President Joe Biden aims to pass as much as $1.9 trillion in covid relief and will likely settle for less, and that depends on talks with conservative members of his Democratic Party. For markets, the more and the sooner, the better. Trump's trial clogged the Senate's agenda, and that is now over.”

Large-scale research in Israel showed that Pfizer's vaccine is 94% efficacious in the real world – and despite the British variant – matching figures seen in trials. [...] Moreover, coronavirus cases and deaths are retreating in most eurozone countries. 

“Former European Central Bank President Mario Draghi has become Italy's Prime Minister after mustering a large majority from the country's political parties. Italy's complicated politics and tough choices may complicate his task down the road, but a dose of stability in the bloc's third-largest economy is positive for the common currency.” 

“Critical resistance awaits at 1.2150, which was last week's high and previously converged with the 200 SMA. Further above, the mid-January top of 1.2190 and 1.2225 are the next levels to watch.”

“Support awaits at 1.2080, a swing low, and then by 1.2055, which separated ranges during February. Further down, 1.20 and 1.1950 are eyed.”