EUR-USD – Retreating Below 1.1000 After German Factory PMI Undershoots

The Euro retreated from the 1.1000 resistance area after trading to a peak at 1.10083, finishing in later New York at 1.0947. Euro area Manufacturing and Services PMI’s all bettered forecasts with the one disappointment, Germany’s Manufacturing PMI which printed at 36.8, missing median expectations at 39.3. Increased confidence in the shared currency due to optimism from the Franco-German agreement for a Euro 500 billion proposal to aid coronavirus hit economies has seen EUR/USD rally over 1.5% this week.

LiveChartsUK EUR USD 1H Chart - 22 May 2020
LiveChartsUK EUR USD 1H Chart – 22 May 2020

Speculative long Euro market positioning remains the headwind for the shared currency. Immediate support can be found at 1.0935 followed by 1.0915 and 1.0875. Immediate resistance lies at 1.1010 and 1.1030. There are no major economic data releases out of Europe today apart from the release of the ECB’s Monetary Policy meeting accounts. Its one of those days when the best strategy is to respect the ranges. Best not to get too carried away with sentiment. Likely range today 1.0880-1.1010. Preference is to sell rallies.

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