The Euro had another subdued trading session where the shared currency held steady despite broad-based US Dollar strength. EUR/USD traded to an overnight high at 1.08964 before slipping to a New York close at 1.0818, down 0.25% from yesterday’s 1.0848. Euro area data saw Eurozone Industrial Production fall to -11.3% in April from March’s -0.1%. While production fell, it was slightly better than expectations of a -12.3% fall. The drop is still huge. There has been an absence of Euro area reports this week, but Friday sees Germany’s Q1 GDP report which could be huge for the Euro.
![ForexLiveCharts EURUSD H1 Chart - 14 May 2020](https://thetradersspread.com/wp-content/uploads/2020/05/ForexLiveCharts-EURUSD-H1-Chart-14-May-2020-1.png)
We reported the net speculative long Euro bets were trimmed to +EUR 76,299 contracts in the week ended 5 May from the previous -EUR 79,681. That is still a huge number of Euro long bets. Market positioning could eventually break the back and a downside break is in the making.
EUR/USD has immediate support at 1.0810 followed by 1.0770 and 1.0720. Immediate resistance can be found at 1.0850 and 1.0900. The next resistance level lies at 1.0950. Look for a likely range today of 1.0785-1.0885. Prefer to sell rallies .