The Euro stayed under pressure, finishing in late New York trade to 1.0840 before rallying in early Sydney to its current 1.0860. The shared currency was the worst performing currency amongst the majors against the Dollar. We highlighted two weeks ago the net market positioning in Euro long bets hit their biggest total since October 2018. The Euro has had difficulty rallying as many of those longs have exited their positions. Where do we go from here?
Markets have yet to see the extend to Europe’s economy, where the coronavirus infections were the second major-hotspot. Most of the data released have been from February and March. European nations are restarting business activity sooner than the US which can be a positive for the shared currency.
EUR/USD has immediate resistance at 1.0880 and 1.0910 (overnight high). Immediate support lies at 1.0810 and 1.0780. The move lower in the Euro in the past 6 days has seen many of those speculative long bets exit. Against the USD, the Euro has more room now to advance. Look for a likely trade today between 1.0810 and 1.0980. Prefer to buy dips.