The pair closed Friday’s session at $1.3122 after rate had seen a decent recovery off session lows of $1.3098 to $1.3159 before it drifted off $1.3118 ahead of the close. Rate had seen highs earlier in the day of $1.3240 with moves through Friday’s session continuing to get driven by fall out from Wednesday’s FOMC Bernanke comments and the analysis of this to try and determine the timing of Fed tapering. Rate saw an early high of $1.3127 into opening Asian trade before it dipped to lows of $1.3087, settling between $1.3090/1.3115 through the balance of the session. Asian traders mentioned demand into $1.3080 with stops below, a break though to meet demand placed from $1.3070 ($1.3073 200-dma) with interest said to extend down to $1.3030-20. Resistance noted into $1.3150, more at $1.3180 with stops above. Germany Ifo is set for release this morning at 0800GMT with most reports suggesting market is expecting to see unchanged to a slight pullback from May’s 105.7. Some suggest that the euro could be more vulnerable to downside surprises than any positive release with peripheral Eurozone sentiment remaining negative and awaiting the outcome of the Eurozone FinMins’ make-or-break session concerning an EU banking union.
