EUR/USD closed in NY at $1.3320, after recovering off traded lows in this session of $1.3278. Rate was pulling back from a late NY recovery high of $1.3337 into Asia, the rate posting overnight lows at $1.3313 in opening trade before bouncing higher. A strong sell off in USD/JPY provided for general dollar weakness and allowed EUR/USD to push up to highs of $1.3356 ($1.3357 76.4% $1.3381/1.3278) before momentum faded. Rate drifted lower to $1.3324 (76.4% $1.3313/56) with recovery efforts ahead of the European open meeting resistance around $1.3340, though rate was pushing up against this level in opening trade. Offers seen placed at $1.3350, a break to expose the overnight high at $1.3356 with a break above to open a move toward Monday’s high at $1.3381. However, market seems to be aware of stiff resistance from $1.3385 to the much reported barrier at $1.3400. Stops noted still above $1.3405. Support $1.3325/20, a break to allow for a deeper move toward $1.3300/1.3295 ahead of stronger area around $1.3280. EMU PPI due at 0900GMT.
EasyForexNews Research Team