The Euro went against the trend of a slightly firmer US Dollar against its other rivals boosted by the European Commission’s proposed EUR 750 billion recovery fund. EUR/USD closed the New York session at 1.1007, up 0.3% from 1.0985 yesterday. The shared currency traded to a high at 1.10308, highs not seen since April 2.
There are two barriers to further Euro gains. First is the speculative market’s overbought condition and second is the stronger US Dollar against the British Pound, Chinese Yuan, and Asian currencies. The risk leader Aussie Dollar retreated against the Greenback. Brexit negotiations which Boris Johnson is trying to revive will need to progress for a more sustained Euro rally.
EUR/USD has immediate resistance at 1.1030 followed by 1.1060 and 1.1100 (strong). Immediate support can be found at 1.0990 and 1.0960. The Euro will consolidate within a higher range expected to be between 1.0940-1.1040.
