Closed in NY at $1.2900 after rate had moved backwards and forwards through $1.2900 a few times during the session, though noted that each dip was a higher low and remained wary of the key support area of $1.2880/75. Rate lifted to $1.2906 in opening Asian dealing before turning lower and touching $1.2890 before it recovered through the mid part of the overnight session, touching a high of $1.2924 before dropping back to $1.2889 into Europe as market reacted to a Sarris comment that Cyprus has not received the requested Russian financial support. Rate holds heavy, currently trading around $1.2891 as European traders begin to filter in. Trade remains open to Cyprus headline risk. Data for this morning has Germany Ifo at 0900GMT which could be interesting reading following Thursday’s poor PMI data, with little in the way of market moving numbers in the US. Support in euro-dollar remains in place at $1.2880/75 ($1.2879 200-dma; $1.2876 76.4% $1.2844-1.2979) with stiops noted through $1.2875/70. A break here to open a deeper move toward recent lows of $1.2857 ahead of stronger level at $1.2844. Resistance $1.2925/30 ahead of $1.2945/55.
EasyForexNews Research Team