As the greenback continues to discourage traders due to the US delivers weak data and the uncertainty surrounding its stimulus give little to no confidence in the Super Power. This toppled with the growing coronavirus infections and poor handling of the outbreaks. However the opposite is true with Europe seeming to have the outbreak under control.
Although we have seen France’s GDP beat expectations helping in the rally, there is another side to this coin. End of month adjustments could see the EURO loose its grip driving it to previous technical highs of 0.1850. The main catalyst would be a bounce in US yields.
For the Bulls consider an initial target of 1.190 with a break past this target 1.20
For the Bears consider a target of 1.1850 followed by 1.1805 should it break that.