The sell-off of the USD resumed yesterday as stocks found support with a “turnaround Tuesday” price action. We see commodity currencies very strong across the board, with room for further gains after retracement. However, EUR will be under the spotlight this week because of ECB situation and also because of Nord Stream. Putin said if the turbine return is delayed, the volume of the Nord Stream will drop and this can cause some serious issues in Europe. Technically however, the EURUS appears to be turning bullish as rising out of a downward channel is in five waves, so be aware of more gains after the retracement. Support is at 1.01-1.012. If ECB will hike more than 0.25bp then we think EURUSD is going to see much more upside.
