The Euro slid to 1.12748 overnight after Monday’s failed attempt to clear 1.1500 failed. Amidst an overall stronger US Dollar, the Euro retreated to finish in New York at 1.1300. The big news affecting the shared currency was the spread of COVID-19 in Europe with Italy reporting 10,149 cases in a nationwide lockdown. On the eve of the ECB meeting, the prospects of a rate cut weighed on the Euro. Market positioning, however, is still short of Euro bets.
EUR/USD settled to close at 1.1300. Immediate support can be found at the overnight lows at 1.1275. The next support level comes in at 1.1240. Immediate resistance lies at 1.1340 and 1.1380.
Expect more volatile conditions with a likely trade today of 1.1270-1.1370. Prefer to buy dips. The speculators are still short of the shared currency.
