Closed in NY Wednesday at $1.3186, the rate recovered off pullback lows of $1.3156 (23.6% of $1.2662-1.3308) after earlier posting a high of $1.3299. Risk appetite stalled in early Asia and despite the strong rally in Wall Street the pair was pulled lower by sharp cross supply, predominantly in euro-yen. Euro-dollar extended slippage and triggered a series of stop-loss sell orders down to $1.3130, printing session lows of $1.3124. Demand in the dip cushioned moves and the pair recovered to $1.3140 where trade settled in a tight range ahead of Europe. On the downside there is talk of more stops on a break of $1.3120, through here opens bids at $1.3115/00, ahead of techs at $1.3084/61 (Former May 1 trendline, 38.2% of $1.2662-1.3308). Data release light in the US today with highlights from ADP Employment change at 1315GMT, followed by the weekly Initial Jobless Claims at 1330GMT.
EasyForexNews Research Team