Bulls Lured into Trap. Forecast as of 21.08.2024

The EURUSD rally has been driven by a number of factors, including shrinking divergence in economic growth, strong demand for pro-cyclical currencies, improving global risk appetite, and other factors. However, it is worth considering whether the euro has risen too high. Let's discuss this issue and make a trading plan.Highlights and key points The euro benefited from its pro-cyclical currency status. The US dollar has replaced the yen as the funding currency in the carry trade. Buying rumors ma