EURUSD - Short - Post Inflation Data Release

We see still EURUSD moving lower as the currency pair continues it's upward momentum despite higher than expected inflation data with core inflation rate YoY coming in at 1.6% vs 1.5% forecast. The EUR has been boosted by greater optimism surrounding the vaccine rollout in the EU as we await key economic data releases including German inflation and US retail sales on Thursday for any significant price action. Therefore we believe there could be some volatility later during the week but we expect prices to resume their medium term downtrend below resistance at 1.214.