Breaking: EUR/USD breaks above 1.21 amid vaccine, fiscal stimulus optimism

EUR/USD has broken above 1.21, hitting the highest levels since April 2018. The currency pair smashed the previous 2020 peak of 1.2011 on Tuesday and after a short correction, is pushing higher. 

The common currency continues benefiting from optimism about a COVID-19 vaccine. The UK regulator approved the Pfizer/BioNTech immunization for use, the West’s first inoculation green light. 

Lawmakers in Washington continue negotiating a fiscal stimulus deal to support the US economy. Optimism about a $908 billion package is also boosting sentiment pushing the dollar down.

The Relative Strength Index on the four-hour chart is battling the 70 level, flirting with overbought conditions. Momentum remains to the upside. 

More EUR/USD: Three reasons for the massive breakout and big levels to watch