The Euro outperformed yet again boosted by the EC’s massive stimulus announcement which saw European equities climb to multi-week highs. The European Union’s plan to prop up the bloc’s coronavirus-hit economies with a EUR 750 billion recovery fund lifted the shared currency past the 1.1050 resistance mark. This morning’s announcement of a Trump press conference on China saw the EUR/USD halt its gains, steadying near its New York close at 1.1070.
Today sees a plethora of Euro area economic data releases. Germany’s Retail Sales, French and Italian Preliminary Q1 GDP, and the Eurozone’s Flash Headline and Core CPI data will be closely watched. Bear in mind today that the speculative long Euro bets are still quite large.
EUR/USD has immediate resistance at 1.1100 followed by 1.1130. A break above 1.1130 could see 1.1180. Immediate support can be found at 1.1040 followed by 1.1000 and 1.0970. Look to trade a likely 1.0980-1.1120 range today. Prefer to sell rallies.
