The Euro had a highly choppy trading session slipping to an overnight low at 1.0927 from its opening at 1.1045 after failing to break above 1.10527 highs. While the Euro bounced back and held above 1.1000, the shared currency is on shaky ground. Another downside attempt cannot be ruled out. Look for further consolidation in the Euro.
The latest Covid-19 update saw total cases in Italy and Spain continue to climb although they have started to level off. Spanish authorities see the outbreak as peaking. The total deaths in each country outnumber those in the US so far. Today sees the release of Euro area (Germany, France, Italy and Spain) as well as Eurozone Manufacturing PMI’s. This will show just how far the outbreak has weighed on the Euro area and Eurozone economies.
EUR/USD has immediate support at 1.1000 followed by 1.0970 and 1.0930. A break below 1.0930 could see us back to 1.0870. Immediate resistance can be found at 1.1055 followed by 1.1085. Look to trade a likely range today of 1.0930-1.1070. Prefer to sell rallies near 1.1050, we could trade lower in the short term before up again. Keep in mind that net speculative Euro long bets increased to +EUR 61,290 contracts from the previous week’s +32,495. That’s hefty.
