The pair closed in NY Monday at $1.3067 after rate had recovered off a session low of $1.3014, the recovery aided by support at the 4pm fix, with triggered stops through $1.3040 on macro and leveraged buys taking it on to that mentioned high, with move also helped as market reacted to a buy rec put out by Goldman Sachs, going long around $1.3060, looking for $1.3500, placing stops on a close below $1.2800. Rate extended highs to $1.3071 into early Asian trade before momentum faded and prompted profit take sales that took it back to $1.3059. Rate recovered to retest that $1.3071 level before turning lower again, the move down this time prompted by US black box fund sales as rate posted lows at $1.3050. Rate recovered, settling between $1.3055/65 into Europe. Upside progress continues to meet resistance from offers attracted to the merged daily moving averages, 55-dma and 200-dma at $1.3075, with the 40-dma at $1.3077 and 50-dma at $1.3079. Offers have been reported between $1.3075/80, with stronger interest now noted into $1.3100. Support remains at $1.3050, a break to expose support between $1.3015/00. Further demand noted into $1.2985/80, with stops seen through $1.2980-70. EZ PPI at 0900GMT the morning interest.
