EUR/USD – Slip-sliding away to 1.0800 as Speculative Longs Bail

The Euro underperformed the majors in FX, extending its fall to 0.92% at the New York close, to 1.0847. The shared currency’s rally that started this week saw the EUR/USD pair hit 1.11472, before retreating to last night’s low at 1.08206. The fall in the Euro, which takes almost 60% of the weight in the Dollar Index, enabled the USD/DXY to rally above 100. (100.163).

Euro USDollar Hourly Chart - Daily FX - 03 April 2020
Euro USDollar Hourly Chart – Daily FX – 03 April 2020

While US claims for Unemployment benefits almost doubled in the latest week, the US Dollar benefited from its relative safe-haven status. Long market positioning in the Euro almost doubled in the latest Commitment of Traders/CFTC report to +EUR 61,290 from the previous week’s +EUR 32,945. Global Covid-19 confirmed cases surged to beyond 1 million. The total death toll exceeded 50,000. Four European countries (Italy, Spain, France and the UK) account for 60% of the death toll.

EUR/USD has immediate support at 1.0805 followed 1.0770. Immediate resistance can be found at 1.0900 and 1.0950. Much depends on tonight’s US Payrolls report and the latest coronavirus toll.
Meantime look to trade a likely 1.0800-1.1000 range today.


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