Citi maintains a medium-term bullish bias on EUR/USD through 2021.

"CitiFX acknowledges the December ECB Meeting was slightly hawkish relative to our expectations. The ECB reinforced the persistence of stimulus, including by increasing the PEPP envelope by EUR500bn until at least March 2022 and recalibrating a range of other measures, notably LTRO terms and reinvestments. But it also signalled a pivot away from quantity-focused asset purchases," Citi notes. 

"Overall, in line with our 2021 outlook, we continue to hold our long-standing medium-term EURUSD bullish bias with a target of 1.30, based on cyclical recovery, the search for value, diversification, changes in hedging and funding patterns and an expectation that the ECB would not yet try to aggressively stall EUR appreciation," Citi adds.