The Euro settled into a 1.0817-1.0880 range overnight as FX volatility eased despite a souring in risk sentiment as oil prices remained under pressure. The overall strength of the US Dollar and a long speculative Euro market positioning weighed on the shared currency. Buyers continue to support the 1.0800 level with an overnight low recorded at 1.08165. EUR/USD ended at 1.0858 in late New York. The overnight high was 1.0880. Germany’s ZEW Economic Sentiment Index lifted to 28.2, outperforming median expectations of a -40.0 fall. The Eurozone’s ZEW Economic Sentiment Index jumped to 25.2 from the previous month’s -49.5. That said, Germany’s ZEW Current Situation Index plunged to a record -91.5, missing forecasts at -77.5.

EUR/USD has immediate resistance at 1.0900 followed by 1.0940. Immediate support can be found at 1.0810 followed by 1.0770. The European Council video meeting (midnight Sydney, 23 April) is a risk to the shared currency if the outcome results in a collapse in talks which will trigger a new EU crisis. Meantime look to trade between 1.08-1.09. Preference is to sell rallies.