Closed Monday’s session at $1.3240, having been pushed up to a high earlier in the day of $1.3277 (from $1.3183 pullback lows in early Europe)on optimism over a Eurogroup Greek debt aid deal. Press conference calls were delayed and tempered Monday’s enthusiasm into Asian trading, with weaker spec longs squeezed as market began to drift lower, the move down to $1.3199 given an added shove as traders reacted to an FT article suggesting that Germany, Netherlands and Finland were showing reluctance at going through with the deal. Rate recovered, meeting resistance around $1.3245 before a US real money account sold back into the recovery, taking the rate to overnight lows of $1.3186. Announcement that the Greek debt aid deal had been agreed saw rate spike to session highs of $1.3293. Rate eased to the $1.3250 area on profit take sales only to pick up fresh demand that lifted it back toward the highs into Europe, as market turned focus on the barrier in EUR/JPY at Y106.00. EUR/USD offers placed from the high through to $1.3310 (100-dma), stronger toward $1.3330 with stops above. Support $1.3225/20.
EasyForexNews Research Team