Closed in NY Friday at $1.2245, having seen a late rally that had taken the rate from lows of $1.2162 to session highs of $1.2257. Rate extended this recovery into early Asian trade, moving up to $1.2274 in an orderly move with Asian traders suggesting stops above $1.2285 were the early interest. However, upside momentum faded allowing rate to drift lower, with sales of EUR/JPY, in a Tokyo holiday thinned market, taking the rate to lows of $1.22323 ($1.2232 38.2% $1.2162-1.2275) before settling between $1.2235/45 into Europe. Traders continue to talk of large sovereign bid interest placed down at $1.2160, linking Austria to the sharp recovery seen in NY. Closer to the current market, traders note bids into $1.2220 with interest extending toward $1.2205/00. Stops noted between $1.2190/85. Resistance seen into $1.22690 ahead of the overnight high at $1.2275. Stops reported above $1.2285 to $1.2310, though next offers seen mixed in from $1.2300 to $1.2340. Eurozone CPI due up at 0900GMT, though most interest seen in US retail sales at 1230GMT. Bernanke testimony Tues/Weds key this week.
EasyForexNews Research Team