1.25xxx target for bulls still alive.

A few months ago, I made an analysis of why the EURO will get stronger against the DXY.
The same target is in my playbook for 2021.

Here's why I'm bullish on the spot currency.

• DXY Weakness
  The US Dollar is entering a bearish phase that will see the reserve currency fall into a multi-year cycle low until 2023-24 based on experts' analysis. This is supported by the actions of the US FED to raise inflation rates, support equity markets, buy treasuries under its QE purchase programs and print more money.
  
• Impact by ECB policies
  The ECB also has its plans to boost the European economy and it will have an impact on the value of the EURO. Currency pairs such as EURNZD, EURGBP, EURAUD & others are expected to fall on EURO weakness. However, the spot currency will go higher on DXY weakness.
  
• Hedge funds positioning
  It's important to note that hedge funds have been taking profits since July as seen on the CFTC COT reports. They are yet to start opening big short positions as the banks have on average held less than 70k short positions since July. Long positions are still above 200k and a major bearish shift in positions will invalidate the 1.25xx targets 🎯.
  
• Technical Analysis
  TA shows that price is not interested in going below and multi-year trend line that was first broken in August '20. Price has been ranging right above a strong level of support. Vaccine news and hopes of global economic recovery will thrust the spot currency higher.
  

On the other hand, the ECB has made it clear that directly influencing the currency is not off the books hence will affect the bullish play

Therefore, I'm looking for bullish action on the lower timeframe charts as soon as the consolidation phase ends for swings to the upside