Closed in NY at $1.3310, off pullback lows of $1.3282 (seen after the ISDA decision on no credit event for Greek swaps), but more importantly above the 100-dma at $1.3296 (today $1.3290). Rate edged higher in early Asian trade, the move influenced by EUR/JPY demand into the Tokyo fix, with rate touching a high of $1.3333 before momentum faltered in the cross and allowed EUR/USD to drift lower through the balance of the session. Rate posted lows at $1.32936 before settling around $1.3300 into early Europe. Traders continue to note the potential for headwind sales in the euro, linked to the recent LTRO allocation. Early attention seen on German retail sales. Support seen between $1.3290/80, a break to open a deeper move toward $1.3270/65 with stops below. Further demand seen into $1.3250. Resistance now seen between $1.3333/38 (Asia/NY high) ahead of $1.3350/60, covering the post Bernanke recovery high of $1.33565. Little to excite on the data front, German retail sales released at 0700GMT disappointed and knocked rate back below $1.3300, with nothing exciting expected from the EU Summit.
EasyForexNews Research Team