The Euro under performed after European finance ministers failed to agree on further support for their economies, hit hard by the Covid-19. The talks were suspended until later today (European time). The Netherlands and Italy were battling over conditions that should be attached to Eurozone credit for governments. Market positioning, which we highlighted earlier this week, saw a large build in speculative long Euro bets to the biggest total since June 2018.
EUR/USD finished at 1.0852 in New York from 1.0895. The shared currency has struggled all week to rally much beyond 1.0930. The long bets are getting nervous and a break lower in illiquid conditions could see further downside in the Euro. Overnight low traded was 1.0830 which is today’s immediate support. The next support lies at 1.0780 followed by 1.0730. Immediate resistance can be found at 1.0880 and 1.0930. Look to trade a likely range today of 1.0780-1.0900. Prefer to sell into strength.
