The Euro extended its decline for the fourth consecutive day to fresh one-week lows, closing at 1.0795 in New York. EUR/USD traded to an overnight low at 1.07819. Grim Euro area data and the market’s speculative long Euro positions weighed on the shared currency, causing it to sag. The slump in Germany’s Factory Orders coupled with yesterday’s constitutional court decision challenging the country’s participation in the Eurozone’s stimulus program weighed heavily on the shared currency.
EUR/USD has immediate support at 1.0775 which should hold for now. The next support level comes in at 1.0730 and 1.0700. Immediate resistance lies at 1.0810 followed by 1.0850. Look for a likely range today of 1.0775-1.0845. While we are near two-week lows, the speculative long Euro market makes one wary of trying to pick a bottom. Look to trade the range shag on this one.