Closed in NY at $1.5966, off NY rally highs of $1.5974 seen after markets reacted to dovish comments from Fed’s Bernanke. Rate touched an early high in Asia of $1.5972, as early direction was dictated by strong French name EUR/JPY demand, but move held off the NY high as well as the reported option barrier at $1.5975. Traders have noted that decent sell interest seen in place from above $1.5970 and said to extend toward the larger barrier at $1.6000. A break here expected to meet profit take sales on any initial move, a clear to take rate on to $1.6030//50. Japanese exporter sales of EUR/JPY acted to press cable to overnight lows of $1.5957 with rate continuing its consolidation of Monday’s move between $1.5960/70 into Europe. Support seen back at $1.5957, with demand seen to $1.5950. A break here exposes stronger support at $1.5920. EUR/GBP was contained by stg0.8362/71 through Asia, the rate trading around stg0.8365. Resistance in the cross seen at stg0.8370/75 ahead of stg0.8390/00. Support stg0.8360 ahead of stg0.8340/35. CBI dist.trades due at 1000GMT.
EasyForexNews Research Team