• EUR/USD drop to 1.1197 EBS stretched below 1.1214 base of 20-day Bollingers

• Swift transition from overbought in April to oversold in May

• For traders betting on a rise, drop below 1.1250 is a concern

• Breakdown hints at longer consolidation, potentially deeper correction

• Stretched situation may limit the depth of possible further decline

• Enduring trade war may result in bigger gains longer-term

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EURUSD

(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)