Rate closed Tuesday’s NY session at $1.3122 after settling around this area following a pullback from an earlier European high of $1.3173 to $1.3103 in NY. Rate picked up demand into the Asian session, the move to $1.31419 driven by Japanese demand for EUR/JPY through the Tokyo fixing. As this cross demand faded so EUR/USD drifted lower, touching a session low of $1.3109 before settling back around $1.3120 ahead of the European open. Rate currently trades around $1.3118. Resistance remains above $1.3140 with stronger sell interest noted from above $1.3160. Bids noted between $1.3110/00, more toward Tuesday’s low at $1.3090 with stops below. The recent large bid at $1.3065 is said to have been removed. Fairly light data calendar for Wednesday with trade to continue to take direction from yield plays. Risk remains in favour, equity markets taking their lead from Wall Street and trading positive, with yen remaining under pressure with traders noting little to no exporter yen demand seen overnight.
EasyForexNews Research Team