I believe today’s weakness was coming after such a bull run, courtesy profit taking (1.20 psychological mark) & European Central Bank chief economist Philip Lane’s verbal intervention. But like 2017 the euro rallied after trading below $1.10. Now the euro retreated below $1.19 sharply, where the 21-daily moving average came into play, just like it did three years ago & then advanced to $1.25 within five months. CFTC report as of 28/08/2020 also shows Institutional firms & Professional traders have rather build on Euro position which will act in the favor of Euro bulls. If history is a guide we might see another 5% gain on euro. As long as the euro appreciates backed by fundamentals like E.U.-U.S. growth and interest-rate differentials, the ECB’s verbal intervention won’t be barrier to euro gains.
