Closed in NY at $1.3370, having rallied strongly from a pullback low of $1.3270 to post extended recovery highs of $1.33747, having taken out the reported barrier at $1.3350. Trade in 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. German GDP to be released into early trade at 0700GMT (expectation -0.20% Q/Q) the initial focus but this will quickly transfer over to positioning trade ahead of this weekend’s G20 meeting and next Tuesday’s ECB LTRO. Resistance remains at $1.3380, a break to turn attention on the larger barrier interest sitting at $1.3400. Expect decent defence selling ahead, a break to open a move toward $1.3436 (50% $1./4248/1.2624). Support seen back at $1.3350/40, with stops placed on a break below. Next support seen at $1.3325/20
ahead of $1.3305/1.3295 and $1.3270.
EasyForexNews Research Team