FXStreet reports that economists at Standard Chartered expect the EUR/USD pair is set to see dips but should hold above the 1.2000 level.

“We expect USD to move lower through 2021, but also expect short-term rebounds along the way. We see EUR/USD long positions being, by far, the most elevated and significant for broad USD. In that context, additional drivers of a near-term decline are likely to be a recent rise in US Treasury yields, a steeper US yield curve and a widening yield differential. The large fiscal stimulus planned by the incoming Biden administration could potentially boost short-term US sentiment and economic outperformance.”

“We expect robust supports around 1.2060 and 1.2000. A mild USD rally could end there. A break lower would suggest a deeper decline into 1.1600-1.1900 window.”