Complete meltdown for the pair, banks took the price down without any sign of correction.
Now, COT data shows bearish EUR against the USD on the long term. Their reaction due to recent fundamentals: USD gained strength once again because of Trumps business conditions imposed to China. [TRUMP SAYS SOME RESTRICTIONS ON TRADE WITH CHINA BEING CONSIDERED IN U.S. CONGRESS ARE 'RIDICULOUS']- tweet on 18feb.
Chinese Economy suffering from virus related factors. [China will stabilize foreign trade, investment to minimize impact from virus]- tweet on 18feb.
What we expect now from a technical perspective is a small consolidation around 1.08 demand area following by an up move correction towards the 200 MA. We will add longs, with the price target of 1.095. On the longer term however, we expect EUR/USD to touch the bottom of the weekly downtrend channel, at price 1.055, if the USD continues to strengthen due to continuation of fundamental world factors.
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