Closed in NY Monday at $1.2585, rate recovered from lows of $1.2568 following weak ISM PMI data which signaled its first contraction since July 2009. EUR/USD ground lower in early Asian trade to $1.2576 before dip demand pared losses, rate extended gains to print $1.2608 having rallied on the back of EUR/JPY demand, broad dollar weakness seen adding to the move. Overall, traders said EUR/USD flows were muted with all eyes on Thursday’s ECB rate decision. Rate settled around $1.2595 ahead of the European open. On the downside technical support seen at $1.2559/50 from the 21 and 5 Day MA’s. Through here opens a deeper move towards bids at $1.2540, stops on a break of $1.2520, ahead of technicals at $1.2516 from the 61.8% retracement of 28/29 June recovery. Topside offers seen capping at $1.2625/30, ahead of $1.2660/70. Light calendar today with highlights From eurozone PPI data at 1000GMT.
EasyForexNews Research Team