The Euro had a good bounce from its overnight lows at 1.07837, trading to a high at 1.09262 before easing to settle at 1.0895. Broad-based US Dollar weakness boosted the shared currency. The Euro’s strong bounce was also the result of optimism as the number of deaths dropped in Spain and Italy. The effects on the economies of both countries have yet to be seen.
We reported that net speculative total Euro long bets increased to +EUR 74,247 bets from +EUR 61,290. These are the largest number of longs since June 2018. This will continue to reduce any strong upside potential in this currency pair.
EUR/USD has immediate resistance at 1.0930 and 1.0960 with 1.1000 as strong. Immediate support can be found at 1.0860 followed by 1.0820 and 1.0780. Look for a likely trade between 1.0840 and 1.0940 today. Prefer to sell rallies while the speculative market remains long.