EUR/USD Price Analysis: Bulls continue to defend 1.21

• EUR/USD trades near 1.2112 versus 1.2100 during the overnight trade. 
• The repeated defense of 1021 contradicts analysts' calls for a pre-ECB pullback.

EUR/USD continues to hold the psychological support of 1.21 for the third straight day despite the dovish European Central Bank (ECB) expectations. 

With the currency pair rising 3% since November amid the resurgence of coronavirus, the central bank may feel pressured to talk down the euro. As such, some observers were anticipating a pullback ahead of Thursday's event. 

While stronger than expected German data keep EUR/USD near 2.5-year highs, we are still looking for profit-taking ahead of the monetary policy announcement," BK Asset Management's Kathy Lien noted. 

So far, however, the sellers have not been able to establish a foothold below 1.21. That has neutralized the immediate bearish case. At press time, the currency pair is trading near 1.2112. A break above Tuesday's high of 1.2134 would open the doors to 1.2178 (Dec. 4 high). Support is seen at 1.2058 (10-day Simple Moving Average) and 1.2011 (Sept. 1 high). 

Daily chart

Trend: Bullish

Technical levels