Traders have been reluctant to bet EUR/USD will drop, and the lack of shorts has been instrumental in its enduring downtrend.
That lack of shorts and low volatility will lead to a bigger and sustainable decline .
Markets have been quiet all year and low volatility markets significantly boost the influence of interest rates.
A big interest rate gap is weighing on EUR/USD.
A huge amount of stimulus is being injected by central banks to offset the negative impact of the trade war.
Stimulus from the biggest players of all, the Federal Reserve and European Central Bank, is expected soon.
That should calm nervous markets and boost risk-taking to support stocks, suppressing the chance of risk aversion that could boost the euro.
The slow EUR/USD slide now occurring within 1.09-12 could become 1.08-1.11 by the end of the year, and the downtrend will endure until speculators get much shorter.
EUR/USD daily Click here