EURUSD: .85 is Closer Than You Think
COVID-19 has brought a financial crisis to us, and as has become customary in such times, a rush into the US dollar -- and an ensuing shortage of them. If the dollar shortage escalates, there are only two barriers between where we currently are and .85, as this monthly chart illustrates. Also very much worth noting is that a pattern of lower highs has been in place on EURUSD since it peaked in 2008. So COVID-19 didn't really reverse a trend; rather, it may simply be accelerating a trend that was already a decade in the making.
Trade setup: Enter short at 1.07, stop at 1.17 (above the trendline from 2008 and horizontal resistance near there), target .85.
Trade setup: Enter short at 1.07, stop at 1.17 (above the trendline from 2008 and horizontal resistance near there), target .85.
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