Closed in NY at $1.2290 after recovering from its Fed Bernanke react lows of $1.2189 seen as he failed to give any hints toward further stimulus, leaving market to wait for the next FOMC meeting Aug 1 and Bernanke’s Jackson Hole address for clues. Real money and leveraged accounts were noted sellers in the move but met strong demand from short term profit taking, as well as option gamma demand ahead of $1.2200. Stops triggered back up through $1.2250 saw rate recover to $1.2299 ahead of the close. Asia took over the recovery baton and extended move to $1.2307, triggering minor stops above $1.2305 though move quickly faltered despite talk of larger stops above $1.2310. Rate drifted off the highs, easing below the opening level before meeting support at $1.2276. Rate trades into early Europe around $1.2282. Stops said to remain in place from $1.2310 through to $1.2330 with talk of stronger sell interest positioned between $1.2340/50. Demand noted at the Asian low of $1.2276, with further demand seen into $1.2260 ($1.2262 38.2% $1.2189-1.2307) ahead of stronger$1.2240/30.
EasyForexNews Research Team