Even in the face of a -14.4% drop in net-longs over the past two weeks, EUR/USD was still able to push to new highs going back to December 2014. Needless to say, it will take a great deal of negativity – a change in tone by the ECB, a substantial turn in economic data – for traders to give up on their Euro bullishness.
Speculation on Fed monetary policy has driven volatility across the markets since the beginning of the month. Minutes from January's FOMC meeting promise more of the same ahead.
In the week ahead, markets will look to try and follow-through from last week, but look for more two-way trade as the rally gets tested.