EUR/USD closed in NY at $1.3370, having rallied strongly from a pullback low of $1.3270 to post extended recovery highs of $1.33747. Asia consolidated this move with trade during the main part of the session contained within a range of $1.3365/80 before dropping late on to $1.3357 into early Europe. The corrective pullback met real money demand which spiked it through the overnight high to $1.3384, but reported offers from above $1.3380 through to barrier interest at $1.3400 provided an early counter. However, pullbacks remained shallow with rate eventually able to claw its way through the sell interest, touching an initial high at $1.3402 which took out the barrier interest. Brief pullback to $1.3385 met fresh demand with second run higher extending to $1.34056. Upside momentum faded, with a paring back of spec longs able to squeeze rate back to $1.3390/85 but underlying tone remained buoyant. Real money offers are now seen in place between $1.3410/20, ahead of tech resistance at $1.3436 (50% $1.4248/1.2624).
EasyForexNews Research Team