The Euro advanced 0.65 % to close at 1.0927 from yesterday’s opening at 1.0855. Overnight high traded was 1.09518. Broad-based US Dollar weakness boosted the Euro higher. European Union members reached a deal overnight to provide further support to member nations. In Germany, Chancellor Angela Merkel pointed out that tighter measures to slow the spread of Covid-19 may not be necessary. All mildly positive for the shared currency. The main negative is the current market’s speculative positioning. We highlighted that net speculative long Euro bets were at their largest since June 2018 in the latest Commitment of Traders report. Something to watch out for, particularly in less liquid markets.
EUR/USD has immediate resistance at 1.0950/1.0980 and 1.1000. Immediate support can be found at 1.0900/1.0870 and 1.08940. Look for a likely range today of 1.0850-1.0950. Prefer to sell EUR/USD rallies.
