The Euro demolished the Dollar for the back half of 2020 and retrace to some level makes sense. The market seems to have exhausted some buyers which is evident on lower highs and the failure to squeeze sellers from 1.2347. The dollar may continue to weaken in the coming months, however there is definitely a correction due. Based on analysis I see smart money attempting to use sell stops at or below 1.2121 from any longs to try and flick the domino and send price back down to 1.2029 where the December move began. Expect for 1.2012 to be choppy if it drops to that price.
Comment:
Ending the week the Euro looked weak. The dollar had a nice rally to end the week despite rumors of more stimulus in the works. Liquidity was found under target one and price turned down without any form of a pullback.
