The Euro traded in a narrow range between 1.11908 and 1.12619 in subdued trade into the month, quarter, and half-year end. Part of the Euro’s move was driven by profit-taking adjustments on the EUR/GBP cross which plunged 0.92% following a few days of strong rallies. The current consolidation in the EURUSD is still likely to see a downside break with long market positioning overextended and in need of a good shake-out.
Today sees the release of Euro area and Eurozone Final Manufacturing PMI’s. Germany reports its Retail Sales for June. Total daily new cases have risen in Germany, although Europe’s numbers in this area are relatively small, globally.
EURUSD has immediate resistance at 1.1260 (overnight high 1.12619) followed by 1.1290. Immediate support can be found at 1.1210 and 1.1190. Look to sell into any rallies in a likely consolidative range between 1.1170-1.1270.
