The dollar was down on Tuesday morning in Asia, remaining near a six-week low as the euro climbed on the back of a rallying COVID-19 vaccine rollout. It had already been losing traction as U.S. bond yields have hovered below a 14-month peak touched last month, reducing the greenback's yield attraction.
The euro rose to $1.2038, having touched a six-week high of $1.2048 on Monday while the British pound gained 1% overnight, its second-biggest daily gain so far this year, and last stood at $1.3989. Some investors said support for the euro likely came from the announcement that the European Union has secured an additional 100 million doses of COVID-19 vaccine by BioNTech SE and Pfizer Inc.
Europe is really the main region which is going to see accelerating vaccinations this quarter. And later in the year, we will see accelerating vaccinations, broadly, in emerging market economies.
The market posture is bullish, positioned for rallies to attack into previous peaking levels over 1.2090. A close over 1.2090 shall lead the Euro to the 1.2140. Expecting a major correction any day. Any corrective dips should fight to hold off 1.1990 to continue advances. A close under 1.1975 signals a near term negative turnover and warns for retracements against 1.1908, testing for a larger topping turnover.
Resistance 2 1.2077
Resistance 1 1.2056
Support 1 1.2011
Support 2 1.1988