• EUR/USD rises to 1.1703 on August 20

• Highest level since May 14 when pair traded 1.1721

• Short squeeze has fuelled rise from 1.1353 on Jul 28

• Rise exceeds 1.1696 -78.6% May-June 1.1797-1.1325 drop

• Extension to May's 1.1797 peak now looking likely

• Many traders have been caught out by dollar's fall

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EURUSD


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