The Euro managed to climb back above 1.0900 to 1.0912 in late New York following its overnight slump to 1.08567 lows. The shared currency found the air thin near 1.1000 after several failed attempts. It now has that slip-sliding away feel. The spotlight will be on the coronavirus impact on European countries, mainly Italy, Spain, France and Germany. Yesterday’s flattening Covid-19 curve seems to have reversed. Germany heads back to work on Monday.
EUR/USD sees immediate resistance at 1.0950 followed by 1.0990. A break above 1.1000 will see 1.1050 and 1.1100. Immediate support can be found at 1.0850 followed by 1.0800. A break below 1.0800 could see 2020 lows retested. We highlighted last week that net speculative Euro longs were at their biggest since October 2018. We look at the latest COT report when it comes out.
The shared currency has had difficulty breaking higher and the market’s net long positioning is one of the reasons why. Look to sell rallies in a likely 1.0830-1.0950 range today