EURUSD Analysis
USD weakness is a longer term view, due to Powell`s speech and lower rates for a longer time, but COT data have suggested that speculators net positions in EUR are at a record high, so risk reward ratio might be better if there is a short term pullback. As long as the price stays above 1.7775, it is supporting further move up. The break of high from a few days ago at 1.1965 can come quite soon and then it opens up a new range of trading with minor resistance at 1.20 as psychological level and then 1.2085. If covid related news, US Non-Farm Payrolls and EU inflation data support risk on sentiment this week I won't be surprised if there is a test to the zone around 1.2250, because in the past the price has not stayed for a long time in the range of 1.2085/1.2250. As usual, things can turn around quickly so watch the daily sentiment as whether an opportunity to buy or protect your capital.
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