EUR/USD – Trading Range Stays Intact for Now, Risk Still Lower

The shared currency traded within familiar ranges between 1.07888 and 1.08513, finishing at 1.0820 in New York. The shared currency continues to see good demand around the 1.0800 level which is gradually being supplied by net speculative Euro long bets. On Friday, Euro area economic data were mostly in line with some better than forecasts. The Brexit stalemate has weighed more on the Pound than the Euro, at least for now. Any failure on a Brexit agreement is bad for both the UK and the EU.

LiveCharts EURUSD - 18 MAY 2020
LiveCharts EURUSD – 18 MAY 2020

EUR/USD has immediate support at the 1.0800 level followed by 1.0770. The next support level is found at 1.0740. Immediate resistance can be found at 1.0850 followed by 1.0900. Last week the EUR/USD traded in a range between 1.0775-1.0900 roughly. It continues to trade around the 1.0800 area. It will need to pull above that, test and close above 1.0900 to see a bigger topside move. A clean break of 1.0770 will see 1.0730. Look for a likely range today of 1.0770-1.0850. Prefer to sell rallies.

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