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EURUSD is in the process of consolidation

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  • EURUSD is in the process of consolidation

    The Dollar has no power and potential to recover after the losses against the Euro in the last few months. EURUSD was trading in the range of 1.17-1.18 in September-October 2020. The Dollar lost over 450 pips against the Euro as the following recovery of 250 pips. EURUSD is trading at about and below 1.2100 but finds strong support at 1.2060-1.2070. In the next couple of days EURUSD will consolidate at the current level of 1.2100. recommend to use the low levels of 1.2070 to open a long position with a target of 40-60 pips.
    The current fundamental events do not generate movements in the forex market. You can expect movements of EURUSD in the "war" between the citizens and government in Europe about hard lockdowns especially in countries like the Netherlands, United Kingdom, Denmark, France and others. If the hard lockdowns continue that may melt the rest of European economy and make the Dollar the winner. Otherwise the events in the United States are also too negative for the Dollar especially the print stamp of dollars (QE).