The Euro came close to the 1.0900 resistance level in overnight trade, falling just short, recording at 1.09885 high before falling to close little changed at 1.0822 (1.0827 yesterday). The shared currency has lagged the other majors against the broad-based US Dollar weakness. Overnight trade saw some rebalancing demand for the Euro ahead of the month end. EUR/USD had a choppy session with the overnight low traded at 1.08097.
Into Thursday’s Eurozone GDP report and ECB rates policy meeting, expect the shared currency to continue its underperformance. Long Euro market positioning is also weighing on the Euro. We reported earlier this week that net speculative Euro long bets saw a slight increase to total +EUR 87,218 contracts from the previous week’s +86,617. This is the biggest number of long Euro contracts since June 2018.
EUR/USD has immediate resistance at 1.0900 followed by 1.0950. Immediate support can be found at 1.0800 followed by 1.0770. Look to sell rallies in a likely 1.0790-1.0890 range today.