EUR/USD – Continues Sticky Trade Around 1.0800, Risk Remains Lower

The Euro once against held familiar ranges, trading to an overnight low at 1.07747 (above strong support at 1.0760) before rebounding to close just above 1.08 at 1.0803. EUR/USD saw an overnight high at 1.08239. The shared currency continued to grind lower with the 1.0800 as a sticky pivot area.

ForexLiveCharts EURUSD H1 - 15 May 2020
ForexLiveCharts EURUSD H1 – 15 May 2020

The Euro area economic calendar heats up today with Germany’s Q1 GDP, the Eurozone’s GDP, EZ Trade Balance and Employment Change. A steep contraction is forecast for Germany’s GDP report.
We highlighted earlier this week that net speculative Euro long bets (week ended 5 May) were trimmed to -EUR 76,299 contracts from -EUR 79,681 but remains stubbornly high at 89% for year’s top. A sustained break lower will see these long bets scramble for cover. Only then when the bulk of them are out can it be safe to buy the shared currency.

EUR/USD has immediate resistance at 1.0830 (overnight high 1.0824) followed by 1.0870 and 1.0900. Immediate support can be found at 1.0780 and 1.0760. A break of 1.0760 will see 1.0730 and 1.0680. Look for the Euro to continue to grind lower in the current environment with a likely trading range today of 1.0760-1.0820. Prefer to sell rallies.

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