Opened early Europe at $1.3250, EUR/USD closed in NY Friday at $1.3252 after rate had pulled back from post US GDP highs of $1.32706 to $1.3235. Rate came under early sell pressure, on the back of EUR/JPY sales into a holiday thinned Asian session, Japan and China closed, the rate pressed to a low of $1.3228 before meeting demand (NY low $1.3226). Recovery saw rate push to $1.3253, holding firm into early Europe. Rate extended its recovery to $1.3267 in early Europe only to meet supply from an Asian sovereign from above $1.3260. Rate squeezed lower, with added weight provided by Russian sales as well as release of higher than expected EMU M3 data. EUR/USD retested the overnight low ahead of the New York open, with rate holding heavy. Trade volumes have been depressed by the holidays in Japan and China, with most of Europe closed Tuesday for Labour Day. Support seen into $1.3220, with demand seen extending to $1.3200. Further demand $1.3180 with stops below. Resistance $1.3260/70, with stops above but stronger offers seen into the barrier at $1.3300.
EasyForexNews Research Team