EUR/USD turns lower to test support area at 1.0815

• EUR/USD upside attempt capped at 1.0885.
• The euro loses ground to test week lows at 1.0815.
• Uncertainty about the EU recovery scheme is weighing on the euro.

The EUR/USD recovery attempt seen on Wednesday’s early trading has been short-lived, as the pair turned lower after peaking at 1.0885 to give away previous gains hitting intra-day lows at 1.0820 so far.

EUR/USD remains heavy with investors wary about the COVID-19 crisis

The EUR/USD opened the day on a positive bias and managed to crawl higher amid a somewhat better market sentiment, with the European stock markets in green and oil prices stabilized. The pair advanced as far as 1.0885 before losing steam ahead of the US session opening, and drop to levels near 1.0815 support area.

Investors seem to be treading with caution ahead of the European Council meeting of leaders, due on Thursday, which is expected to define the first draft of the European Recovery Fund. With the COVID-19 shutdown expected to trigger a deep recession in the Union, further disagreement among union members over the mechanisms to support the economy might have serious consequences in the Union.

EUR/USD: support area at 1.0815 under attack

The pair has reached session lows right above 1.0815 (Apr 16, 17 and 21 lows), which so far remains intact. If that level gives way, the bears might pull the EUR/USD to 1.0770 (April 3 low) and then towards key support at three-year low 1.0635. On the upside, immediate resistance area lies at 1.0885/1.0900 (session. high, April 20 high) and above there, 1.0940 (intra-day high) and 1.0990 (April 14, 15 high).