EUR/USD – Unable to Rally Above 1.0800 as Longs Continue to Build

The Euro finished around the 10800 level, not far from over 1-week lows despite an improvement in risk appetite and a fall in the coronavirus death toll in Italy and France. Germany saw its fourth daily drop in new cases. While the Dollar eased against risk currencies like the Aussie, Kiwi and Canadian Loonie, the Euro struggled to advance against the Greenback.

forex live EUR USD 1 H Chart - 07 April 2020
forex live EUR USD 1 H Chart – 07 April 2020

The latest Commitment of Traders/CFTC report for the week ended March 30 saw leveraged funds increase their total net Euro long bets to +EUR 74,247 contracts from the previous week’s +EUR 61,290, an increase of 21%. Market positioning will continue to exert its influence on the shared currency and the short-term risk remains lower. Only a broad-based US Dollar fall will support the Euro.

EUR/USD has immediate support at 1.0775 followed by 1.0720 and 1.0680. Immediate resistance can be found at 1.0840 (overnight high 1.0835) and 1.0870. Look for a likely range of 1.0740-1.0870 today. Prefer to sell rallies.

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