The Euro retreated to close at 1.1265 in New York after hitting an overnight high at 1.1353 in European trade. EUR/USD hit an overnight low at 1.12279 before rallying in late trade. Germany’s ZEW Economic Sentiment Index climbed to 63.4, beating median estimates at 60.0. However, it was the robust rebound in US Retail Sales that undid the shared currency.
The latest Commitment of Traders report for the week ended on 9 June saw net speculative Euro long bets jump to +EUR 95,649 contracts from the previous week’s +EUR 81,240. According to Sax Bank, the net total was the most bullish in the shared currency since May 2018.
EUR/USD has immediate support at 1.1230, 1.1200 and then 1.1170. Immediate resistance can be found at 1.1300, 1.1350 and 1.1400. Look for consolidation in a likely trade today between 1.1175-1.1325. Prefer to sell rallies, the Euro will struggle to hold any meaningful gains with the number of long bets around. These need to be unwound.
