At the moment, the DXY is being driven primarily by developments in the China-U.S. trade agreement, while the pair is left to float with the Euro as its primary driver, which unfortunately, lacks positive momentum. Therefore, nothing short of concurrent positive economic developments is required to stall (and hopefully reverse) the current 32-day old 3.64% drop in the Euro against all its major trading partners. No one positive reading can do a dent on the increasing momentum Euro bears/dollar bulls are experiencing.
Technically, the pair seems to have its sight set on the 1.16 handle, a 2.7-year old resistance-now-turned-support level. My view is still bearish, but economic developments in the next two weeks will ultimately decide how much longer the Euro is going to depreciate.
Technically, the pair seems to have its sight set on the 1.16 handle, a 2.7-year old resistance-now-turned-support level. My view is still bearish, but economic developments in the next two weeks will ultimately decide how much longer the Euro is going to depreciate.