The shared currency keeps the offered bias unchanged, although EUR/USD manages to bounce off earlier lows in the proximity of 1.19 the figure. EUR/USD halts three consecutive daily advances on Friday amidst the renewed demand for the greenback. In fact, investors appear to have re-shifted their focus to the potential higher inflation in the US, particularly after the $1.9 trillion fiscal stimulus bill became law on Thursday, lending fresh oxygen to US yields and the dollar.
EUR/USD’s bullish attempt failed to re-visit the 1.20 neighborhood in past hours. The solid rebound in the greenback as of late put the previous constructive stance in the euro under heavy pressure, as market participants continue to adjust to higher US yields and the outperformance of the US economy. A move below the critical 200-day SMA (around 1.1815) should shift the pair’s outlook to bearish in the near-term.