Closed in NY Friday at $1.3370, having extended its corrective pullback to $1.3353 during the session, before performing a slight recovery into the close. Stops below $1.3350 became the early target into Asia, the tripping of which took rate to extended lows of $1.3325 before profit take demand emerged to correct rate back above $1.3350, extending the move to $1.3380 before momentum faltered. Rate then settled between $1.3365/80 through the balance of a fairly quiet session, Japan and several Chinese centres closed for new year making Sydney the only major centre open. Traders note today’s Eurogroup meeting (Cyprus bail-out package a topic of discussion) along with end of week G20 which could make for headline reaction risk. US retail sales Wednesday seen as the standout data release, the market to judge the spending of US consumers after January tax hikes kicked in. Bids seen in place at $1.3325/20 ahead of $1.3300. Resistance $1.3380, $1.3400/10 and $1.3430. Asian holidays and weekend US weather could act to make Monday’s session fairly subdued.
EasyForexNews Research Team