Closed in NY at $1.3154, having recovered Monday from a low of $1.3079 to $1.31599 on improved risk outlook. Rate dipped back to mark early lows in Asia at $1.3146 before pushing higher as risk was further boosted by the gains in equity markets, the eventual break of $1.3170 tripping stops which took rate on to a high of $1.3192. Rate drifted lower, meeting support at the broken resistance at $1.3170 before breaking below, the move extending back toward the earlier low before fresh demand emerged. Rate was trading back around $1.3165 into early Europe. Equity activity expected to be volatile with traders noting Friday’s quadruple witching for European and US markets. Eurogroup approval for the next Greek aid package has turned attention toward Spain with pressure seen for them to reduce the budget deficit for 2012. Market will be on watch for comment from Ecofin. Attention will be on Germany ZEW at 1000GMT ahead of key US retail sales data at 1330GMT. FOMC at 1815GMT though no surprises expected. Offers seen at $1.3190/1.3200, stronger toward $1.3215. Support $1.3150/40.
EasyForexNews Research Team