Closed in NY at $1.2879 after rate extended its corrective pullback (off post Friday’s NFP highs of $1.3072) through the NY session to a low of $1.2859. Rate touched an early high at $1.2885 in Asian trading before turning lower again, influenced by early Japanese sales of euro-yen, followed by decent sales of euro-Aussie on demand seen for a syndicated Australian government bond. Rate eased through the NY base before finding initial support at $1.2850, the rate then recovered to $1.2876. Another round of selling emerged to press rate below $1.2850, the move triggering stops which extended lows to $1.2835. Recovery has seen rate edge to $1.2864 ($1.2866 76.4% $1.2876-35) ahead of the European open. Bids said to remain in place at $1.2835, a break to expose the 200-dma at $1.2823 ahead of Oct1 lows at $1.2804. Decent demand linked to these technical levels seen placed between $1.2820/00. Resistance now seen at $1.2875/85, a break to allow for a move toward $1.2900. Industrial production from France and Italy provides the data interest, with France Hollande meeting Spain Rajoy also in focus.
EasyForexNews Research Team