Closed in NY at $1.3115, off extended pullback lows of $1.3103. Rate dipped to mark Asian session lows at $1.3105 in opening trade only to bounce back as market moved into a partial recovery mode, led by equity markets as they pared Tuesday’s losses. Strong hedge fund demand for EUR/JPY post Tokyo fix provided the early upside drive, taking EUR/USD through stops at $1.3140/45 which took rate on to an overnight high of $1.3153. The r move did meet decent supply above $1.3150 from a UK clearer which countered, but rate was holding firm into early Europe. Offers said to remain in place between $1.3150/55 with talk from asia placing more stops from $1.3155 through to $1.3180. Next resistance seen at $1.3180/85 with stronger interest said to reside between $1.3200/10. Support remains in place on approach to $1.3100 ($1.3105/03 lows Asia/NY respectively) with buys here being linked to Asian sovereign interest which has in turn sparked suggestions that $1.3100 holds barrier interest. German factory orders 1100GMT and US ADP 1330GMT the data interest, but Greek PSI concerns remain in focus.
EasyForexNews Research Team