The Euro failed to take advantage of the US Dollar’s initial weakness, trading to an overnight high at 1.13028 before falling to a low at 1.1223, closing in New York at 1.1240. Euro area economic data released yesterday were mixed. Spain saw its number of unemployed people climb to 5,100, widely missing forecasts for drop of 113,000. The overall Eurozone Unemployment rate fell to 7.4 %, beating forecasts at 7.6%.

Speculators have yet to correct their net Euro longs which are at their biggest total since early 2018. Until at least 30% of these longs are cleared, the Euro will struggle to see any meaningful rallies from current levels. The longer we stay in this range, the more chances there are for a break lower.

The consolidation in the shared currency should continue with immediate resistance found at 1.1290 followed by 1.1320. Immediate support can be found at 1.1220 followed by 1.1170. Look for consolidation within a likely range today of 1.1180-1.1280. Prefer to sell into any rallies.