EUR/USD – Holds 1.08 But Still Shaky on Spec Longs, EU Concerns

The Euro finished 0.27% lower in subdued trade, settling at 1.0815 in late New York from its 1.0840 opening yesterday. EUR/USD traded to an overnight low of 1.08027, managing to hold above the 1.0800 support level. The shared currency remains dogged by EU concerns following last week’s German Constitutional Court ruling which is weighing on the Euro. The latest Commitment of Traders report (week ended May 5) saw speculative long Euro bets trimmed to +EUR 76,299 from the previous week’s +EUR 79,681. Net total shorts though are still 87% from yearly highs.

LiveChartsCo UK - EURUSD - 1H - 12 May 2020
LiveChartsCo UK – EURUSD – 1H – 12 May 2020

EUR/USD has immediate resistance at 1.0850 (overnight high 1.08505) followed by 1.0880 and then1.0900. Immediate support can be found at 1.0800 and 1.0770. In the current environment, expect the shared currency to consolidate in a likely trading range of 1.0780-1.0830. The risk for the Euro is still lower and it should grind through all of the bids clustered around the lower support levels.


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