So two things to point out:
1. The lows held! (Yellow box)
2. The heaviest range has been cleared with ease.
This is a weekly chart and goes back to 2014 when the big drop first started.
Now to the macro thought process and long-term retrace of the Euro . It really comes down to a few key things:
Will years of austerity finally pay off? Has the Eurozone found that it now has a better balanced budget than before and is more steady than the US? Will the EU come out of the Coronavirus crisis even stronger and more prepared? This is a key question and I am starting to think there is a possibility that the strength of Europe might have been short-term pain (yes, several years of underperformance) for long-term gain (a new bull market could be beginning as they combat the Coronavirus). We shall find out and I will be curious to hear your thoughts. Remember I am no expert, I am simply writing my thoughts out as I watch this pair. I should also let you know that I am based in the US and find myself interested in the two regions fiscal and monetary policies.
Another thing I am thinking about is the Hamilton bonds and the growing sophistication of EU members and how they are approaching this crisis. This is impressive! If they can keep this up, meaning the teamwork and coordination while using the ECB to back their teamwork, well, I understand why the Euro might be gaining strength compared the US.
Lastly, this is a EURUSD chart and you do have to ask yourself: is the US policy really that much better than Europe's? I think some people are starting to grow doubtful of that. Going forward I will be paying attention to more European leadership and I look forward to seeing who is steering the region in the right direction.