Possible New 2020 Highs for the EURO

Aug 30, 2020

The greenback has recently had weakness. Analysts are in consensus that the GBP is best positioned to gain from the USD weakness. For the EURO, major headwinds from resistance levels dating back to the 1990s lie ahead. Despite this, analysts have set their eyes on the 1.25 target by next year. The CFTC COT data shows that speculators have gone long on the EURO futures since the beginning of 2020 and this is expected to continue into next year with the European Economy set to gain more growth compared to the US, thanks in part to the COVID19 response. The EURO has also broken a long-term trend line on the Weekly and Monthly time frames. A possible retest could happen before the bull run to follow. I'll be monitoring price action for the near future.