Extended moves in the EUR/USD were few and far between in 2019 as the pair traded in the narrowest annual range since the single currency's inception in 1999.
Mean reversion trading strategies were rewarded last year, while selling low and buying higher looking for range breaks usually ended in tears.
This might not remain the case in 2020, but for those willing to wager that a major break is unlikely, the current EUR/USD level provides a decent risk-reward for potential buyers.
The EUR/USD is approaching key support at 1.0860/80 where the 2019 low (1.0879) converges with the 76.4 Fibonacci of the entire 1.0340-1.2556 move (1.0863).
Buying EUR/USD at the current 1.0920 level with a stop below 1.0850 is the preferred strategy for the mean-reversion/contrarian trade.
A break below 1.0850 would be very bearish technically, leaving little support this side of 1.0500.
If the 1.0860/80 support holds, the EUR/USD will likely be drawn towards the 100-day moving average around 1.1065/70 at some stage.