EUR/USD – Retreats from Sept 2018 Highs, Corrective Forces in Play

The Euro retreated to 1.1718 in late New York after trading to 1.1781 on Monday, September 2018 highs. A bounce back in the US Dollar pushed the widely overbought Euro to an overnight low at 1.1699 before closing a touch higher. Last night was the first time in weeks that the shared currency did not reach new cycle highs. There are no major European economic reports scheduled for today and the Euro will take its lead from any US Dollar moves today.

EURUSD Daily IG DailyFX Chart - 29 July 2020
EUR/USD Daily IG DailyFX Chart – 29 July 2020

EUR/USD has immediate support at 1.1700 followed by 1.1670 and 1.1640. Immediate resistance can be found at 1.1740 and 1.1770. Major resistance lies at the 1.1800 level. The sharp Euro up move is in danger of a reversal with speculative market positioning currently long of the shared currency at early 2018 highs. Keep an eye out for a rise in the second wave of Covid-19 in several European countries. A continuous upsurge will be the catalyst for a Euro correction lower.
Look for a likely range of 1.1640-1.1740, prefer to sell rallies.

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