The pair closed in NY Thursday at $1.3675 as rate consolidated its rally to $1.3682 following its reaction to the US debt ceiling deal and its possible effect as regards the timetable for US tapering of QE. Rate had found a pullback low of $1.3657 in NY, and with early dollar demand into Asia the rate squeezed back to $1.3659 from an early posted high of $1.3678. Rate settled between $1.3662/66 through the Asian afternoon, trading around $1.3664 ahead of Europe. Resistance remains in place from $1,.3680 and said to extend toward suggested barrier interest at $1.3700. A break here to expose stops, which if triggered to open a challenge on the 2013 highs at $1.3711 (Feb1). Support remains at $1.3660/50, a break to open a deeper move toward $1.3630/20 with stops noted below. A light EZ calendar for today with the US now turning attention to the rescheduled NFP release on Oct22. Fed speakers due today with market to watch for any to clues to the tapering timetable going forward.
