Christopher Vecchio of DailyFX.com shares a video in which he discusses how the euro is a mixed basket but there is hope for recovery.  

As the US dollar faces its own bout of uncertainty and vulnerability, there remains ample room within the downtrend contained by the May and July highs in EUR/USD for a further rally up towards $1.2995, the mid-September swing high.


Perhaps providing a cushion to the euro in the near-term is stretched market positioning. Even as EUR/USD has recovered nearly 300-pips off of its early-October low, the futures market remains saturated with aggressively short speculators. Non-commercials/specs held 155.3K net-short contracts for the week ended October 14, an increase from the 146.2K net-short contracts held a week earlier. Latent potential for a short covering rally exists; it just needs the right catalyst.

By Christopher Vecchio, Currency Analyst, DailyFX.com