Euro Rally

EUR/USD – Correction Up Limited to 1.09, Spec Long Bets Support at 1.07

The Euro advanced 0.81% to 1.0878 from yesterday’s NY close of 1.0755. EUR/USD traded to an overnight high at 1.0889, virtually matching the previous session’s high (1.0888). The shared currency is trading on the back of the general US Dollar moves. Expect more of the same today with the focus on the US Jobless Claims report. There are some Euro area data, the most prominent being Germany’s Gfk Consumer Climate report.

EURO - DOLLAR CHART 1H - Daily FX - 26 March 2020
EURO – DOLLAR CHART 1H – Daily FX – 26 March 2020

EUR/USD has immediate and strong resistance at 1.0900. Yesterday we highlighted that the latest Commitment of Traders report saw speculators turn long of Euro bets, and for the first time net short USD since June 2018. Most of this were the big EUR turnaround of 45,162 contracts. This will also reinforce the topside of EUR/USD at 1.0900. The next resistance level lies at 1.0950 followed by 1.1000 and 1.1050

Look for the Euro to consolidate with a likely range today, first up of 1.0780-1.0920. Just trade the range shag on this one today, no strong views until the US Jobless data comes out.


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