Closed in NY at 1.3202, after recovering off session lows of $1.31334, the recovery continuing into Asia as demand for EUR/JPY influenced the rate to an extended high of $1.32134 before settling between $1.3190/1.3210 for the balance of an otherwise subdued session. Rate trades around $1.3195 in early European dealing. Not much on the calendar to excite today. Data wise US new home sales at 1400GMT the stand out interest (apart from Canadian CPI at 1100GMT). Speakers include the Fed’s Bernanke and Lockhart as well as IMF Blanchard. Bids remain at $1.3190, a break to open a deeper corrective pullback toward $1.3175/70 ($1.3173 50% $1.3133/1.3213). Below here and rate can ease on toward $1.3165/60, where decent demand is reported in place. Resistance noted from above $1.3220 and extends toward $1.3240 ($1.3223 trendline drawn off $1.3286-hourly chart/$1.3228 61.8% $1.3286/1.3133), with further interest placed close behind between $1.3250/60 ($1.3250 76.4% $1.3286/1.3133 and $1.3257 Mar22 high).
EasyForexNews Research Team