Important supports are now at the psychological 1.20 threshold, and as long as the euro trades above it, the short-term outlook seems bullish. The medium-term trend also points to further upside.
Additionally, the next support could be seen at previous highs in the 1.1960 region. It is likely that these levels will be tested but should offer a good risk-to-reward long position.
Finally, another demand zone could be seen at the short-term trend line, which is currently near 1.19.
The resistance for today's trading might be at 1.21, but bulls will most likely target 2018 highs in the 1.25 area from the medium-term perspective.
The Fed's monetary policy, along with a large fiscal stimulus, should cause inflationary pressures, which could be negative for the USD, at least at the beginning of the inflationary cycle.
