The Euro climbed on the back of broad-based US Dollar weakness after holding the 1.0700 support level well on buying demand. EUR/USD finished at 1.0828 in New York from yesterday’s 1.0824. Gains were modest as the shared currency struggled past its overnight high at 1.0860.
The latest Commitment of Traders/CFTC report saw speculative Euro long bets continue to grow to total +EUR 87,218 contracts in the week ended 21 April. Which are the biggest number of total net speculative EUR longs since June 2018. The Euro is struggling to trade higher under the weight of those longs. While some European countries like Italy have eased their own restrictions, allowing some businesses to start the coronavirus toll remains high and the economies are weak.
The ECB is expected to increase the size of its bond buying program at the conclusion of their meeting on Thursday. Expect any Euro rallies to be sold into.
EUR/USD has immediate resistance at 1.0870 followed by 1.0900 (strong). Immediate support can be found at 1.0800 followed by 1.0770. Look to sell rallies in a likely 1.0760-1.0860 range today.
