Closed in NY Wednesday at $1.3133 after rate had extended its recovery through the session to an eventual high of $1.3148, the move able to brush aside ECB Draghi comments that the ECB is ‘far’ from exiting stimulus. This recovery extended into early Asia, the continued climb aided by early demand for yen pairs, with euro-yen taking the rate through $1.3150, reported stops above triggered which took rate on to $1.3163. The rise stalled ahead of reported offers into $1.3165, the counter aided as euro-yen met supply post fix, though corrective pullbacks met demand around $1.3140. Fresh demand emerged into the dip allowing rate to settled around $1.3150 ahead of the European open. Last day of the month with models suggesting demand to be seen for euro-dollar at the fixes. Offers remain in place into $1.3165 with stops noted above through to $1.3185. A break here expected to meet stiffer resistance into $1.3200. Support remains into $1.3140/30 with stops below, a break to open a deeper move toward $1.3115/00. Asian traders note that there has been decent demand shown overnight for Mar12 1.3000 strikes.
EasyForexNews Research Team