EUR/USD closed in NY at $1.3247 after trade was contained within a range of $1.3212/67. Rate picked up an early bid tone into early Asian dealing, the rate edging to an early high of $1.3255 before dropping back to $1.32312 as rate tracked Aussie’s dip that took out option barrier interest in this pair at $1.0600. Reversal in Aussie was quick, the recovery taking EUR/USD to an eventual high of $1.3265. Rate then settled between $1.3250/60 ahead of the European open before picking up fresh demand interest into Europe. Main demand seen from a squeeze on euro cross shorts which extended recovery to an initial high of $1.3287. Break here met stiff resistance ahead of $1.3300, a US investment house a noted seller, but level gave way ahead of Ifo release. Stronger than forecast (and rumoured) data spiked rate to $1.3320 before meeting Asian sovereign supply. Second wave of buys triggered a barrier at $1.3325 to take rate to $1.3330. Clever buyers emerged to extend move to $1.3343 before upside momentum faded.
EasyForexNews Research Team