Closed in NY at $1.30052, after rate had seen lows in this session of $1.2983 before bouncing back to $1.3044 as market reacted to comments from Greece as parties there announced intentions (as regards austerity and Greek debt) as they tried to form a coalition to form a government. Rate managed to mark overnight highs at $1.3006 in opening trade before drifting back below $1.3000. Downside momentum picked up as AUD broke below $1.0075, move taking out reported stops through $1.2980 before rate met support at $1.2965. Rate settled around $1.2970 ahead of the European open, with recovery efforts capped at $1.2975. Traders reported that decent sized bids appeared on trading platforms through the session, one for E500mln at $1.2980 filled by EUR/JPY sales. Traders now note decent demand in the area between $1.2965/60 as we enter European dealing, with a major US name sitting on the bid ahead at $1.2970. Further demand seen into $1.2955/50 ($1.29552 low May7, $1.2954 61.8% $1.2624-1.34869). Barrier at $1.2950 with stops below. Resistance $1.3000/05, $1.3015/25 ahead of $1.3040/45.
EasyForexNews Research Team