EUR/USD – Technical Chart

February 16, 2021

EUR/USD is Bullish

Powell reiterated his dovish stance and CB policy to remain loose with a floor now put in under EUR/USD to defend that critical 1.20 level.  The $1.9T stimulus package is expected to be passed by February 22 and this is a positive change agent that is yet to be priced. The short 6E trade was massively crowded and change control is now to smart money longs. The long term BULL TREND HIGHER in EUR/USD HAS BEEN REPAIRED and now intact.  I AM VERY BULLISH HERE ON EUR/USD, even more so than the S&P in its current structure. Positive volume delta gaining traction and I expect strong buyers to show up soon.  Sentiment has shifted since the policy meeting.

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