EUR/USD – Dismal Data, Spec Longs Weigh, Soggy US Dollar Supports

EUR/USD slumped 0.59% to finish at 1.0902 after trading to an overnight low at 1.08957. The Euro fell following the release of some dismal Euro area economic reports. The latest Commitment of Traders report saw a trimming of net speculative Euro long bets although the total remains near recent highs. Further Euro area reports are due today which will keep the shared currency under pressure.

TradingView - EURUSD 5 D chart - 05 May 2020
TradingView – EURUSD 5 D chart – 05 May 2020

The lone supportive factor for the Euro is the US Dollar’s relative weakness of its own. The highlight of this week’s events is the US Payrolls where the job losses are expected to be the worst ever.
Market positioning will continue to be a drag on the shared currency. We may be forming a range that is likely between 1.08-1.10.

EUR/USD has immediate resistance at 1.0935 followed by 1.0985 and 1.1015. Immediate support can be found at 1.0890 and 1.0860. Look to trade a likely range today of 1.0885-1.0985. Just trade the range shag on this one today.

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