The Euro’s rebound did not quite get up to the 1.1000 resistance level, topping out overnight at 1.09957, easing to settle at 1.0985 in New York. The shared currency’s rally was mostly against the broad-based US Dollar weakness. Yesterday we highlighted that the Franco-German EUR 500 billion grant facility for the European Union met immediate opposition. Net speculative market long positioning also has prevented the shared currency from any strong rallies.
EUR/USD has immediate resistance at 1.1000 followed by 1.1030. Immediate support can be found at 1.0960 followed by 1.0930. We expect a likely range today of 1.0920-1.1020 with the preference to sell any rallies toward 1.1000. We take a look at the latest market positioning in tomorrow’s report.
