The Euro slid under the key 1.1000 level after holding between 1.10-1.12 for just over a week now. A risk-off market stance offshore saw the killer Dollar cut up the Asian, Emerging Market and Risk currencies up where the Greenback recorded a minimum 1% rise. While Germany’s Retail Sales unexpectedly rose higher than forecast and Euro area PMI’s mostly matched expectations, the coronavirus outbreak’s continuing toll in Europe that once again took the spotlight. Italy contemplated extending its lockdown for another two weeks while confirmed cases in Germany surged.
EUR/USD traded to an overnight low at 1.09028 before rebounding to 1.0957 in late New York. Immediate support lies at 1.0900 followed by 1.0850. Immediate resistance can be found at 1.1000 followed by 1.1050. Expect another wild ride in the shared currency today. While the Dollar remains bid in the short term, US weekly jobless claims are out tonight. Bear in mind as well that the latest COT report (week ended March 24) saw net speculative Euro long bets jump to +EUR 61,290. contracts from the previous week’s +32,495.
No strong views from me, brace yourself for another wild ride today and tomorrow. Look to trade a likely range of 1.0880-1.1020 first up today. Pick your levels well and stay nimble.
