EUR/USD – Downside Stalls at 1.1200, Stale Longs Pressure Downside

The Euro extended its decline amidst broad-based US Dollar strength, falling to an overnight low at 1.12136 before climbing to settle at 1.1235 in New York (1.1295 Friday Asia open). This morning, the shared currency EUR/USD saw a bounce to its current 1.1252. The risk-off sentiment due to fears of a second wave of Covid-19 affects the Euro less than the other currencies. Which is mainly because the situation in Europe is calmer in both politics and the virus pandemic. Market positioning in the shared currency remains long at multi-year highs and this will continue to cap any meaningful topside moves.

FXCM EURUSD 6 M Chart - 15 June 2020
FXCM EUR/USD 6 M Chart – 15 June 2020

EUR/USD has immediate resistance at 1.1265 followed by 1.1305 and then 1.1400. Immediate support can be found at 1.1200 and 1.1160. Look for consolidation today between a likely range of 1.1180-1.1280. Prefer to sell rallies.

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