Closed in NY at $1.5432 after seeing lows in this session of $1.5393, holding above tech support at $1.5390 (76.4% $1.5269-1.5778 and 1.618% swing of the recovery from $1.5462 to $1.5578). Rate initially edged to $1.5434 in early Asian trade before turning lower, pulled down by EUR/USD negative react to Moody’s downgrading of Italian bonds, posting session lows at $1.5419 before recovering. Rate extended its recovery to $1.5444 as risk was given a boost by better than expected Chinese data with rate holding above $1.5425 ahead of the European open. EUR/GBP held back above stg0.79 through Asia, with trade contained within a range of stg0.7902/14, trading around stg0.7905 into Europe. Nothing on the domestic calendar of note with direction again to be dictated by EUR/USD action. US PPI at 1230GMT and US UofM at 1355GMT the afternoon’s interest. Bids remain in place around $1.5420 with $1.5407 (76.4% $1.5395-1.5444) providing support ahead of another challenge on Thursday’s lows at $1.5395. Resistance seen into $1.5450.
EasyForexNews Research Team