The Euro did a U-turn after the US Dollar rebounded against all its rivals on the market’s risk-off stance due to a resurgence in coronavirus cases. EUR/USD finished near its overnight lows at 1.1250 from yesterday’s opening at 1.1310. Broad-based US Dollar strength and the fresh threat of new US tariffs on up to USD 1.3 billion of European products weighed on the shared currency. The ongoing aircraft dispute between the US and the European Union was cited by the Office of the US Trade representative. Some saw this as a retaliation by the Trump administration to Europe’s suggestion that it will close its borders to Americans when they open.
EUR/USD has immediate support at 1.1240 (overnight low traded was 1.12498). The next support level lies at 1.1200. The strong support level at 1.1170 is under threat once again. Immediate resistance can be found at 1.1280 followed by 1.1310. Look to sell Euro rallies in a likely range today of 1.1210-1.1310. The speculative long Euro bets have yet to succumb. The time may be coming soon.