The shared currency extended its three-week advance against the faltering Greenback, touching overnight and 1-year highs at 1.14948, before easing to settle at 1.1445. Broad-based US Dollar weakness brought about by the plunge in US bond yields as the coronavirus spread intensified in America lifted the EUR/USD pair.
Speculative short market positioning hit extremes last week. The COT report saw short Euro bets climb to -EUR 114,021 contracts from the previous week’s -EUR 91,507. Which was the biggest speculative short in a year. Its no wonder the Euro has continued to advance against the faltering US Dollar. We look at this week’s COT report to see how the market is positioned in the shared currency.
We may have seen a short-term high on the EUR/USD pair at 1.1500. Overnight, German 10-year yields tumbled 15 basis points to -0.86% overnight in contrast with the 26-basis point drop of its US counterpart. The ECB holds its policy meeting on Thursday. The coronavirus spread in Italy has seen the death tool rise to 463 from 366 on Sunday. These factors should prevent the Euro from climbing above 1.1500 before Thursday’s ECB meeting.
EUR/USD has immediate resistance at 1.1470 followed by 1.1500 and 1.1530. Immediate support can be found at 1.1410, 1.1370, and 1.1340. Look to trade a likely 1.1380-1.1480 range today. Just trade the range shag on this one.