Closed in NY Friday at $1.2980, opening Asia unchanged before edging up to mark session highs at $1.2991 in opening trade. Rate reversed off highs as Asian equity markets opened with a negative tone leading the way into general risk aversion. Euro-dollar squeezed down to challenge the $1.2966/65 area where it met decent support, giving way on a third test as market targeted reported stops below $1.2950 ($1.2956 Friday low). Added weight from triggered stops provided the weight to extend lows to $1.2928 before it settled back around $1.2950 ($1.2954 50% of last fall from $1.2980-28 where recovery efforts have so far peaked). A fairly light data calendar today though Germany Ifo at 0800GMT will provide focus. Apart from this, headline trading expected to dominate as traders try to gauge risk. Developments in Spain and Greece to be watched. Support remains between $1.2930/20, a break below to open a deeper move toward $1.2800. Resistance seen into $1.2955, a break to open a move back toward $1.2980.
EasyForexNews Research Team