EUR/USD closed in NY at $1.3156. Trade through Asia was initially contained within a very tight range of $1.3147/58, dipping down to mark session lows at $1.3145, as rate reacted to Aussie’s fall following the weak release of Australian inflation data, before recovering back, touching overnight highs at $1.31602 ahead of the European open. Rate retained a firm tone into early Europe, with middle eastern demand cited as rate continued its upward path in early trade. Same middle eastern name was linked to offers placed above $1.3180, capping the recovery at $1.3183 ($1.3182 61.8% $1.3229/1.3105), with rate then settling between $1.3160/83 through the balance of the session though underlying tone remained buoyant within. Sell interest is seen placed to $1.3200, a break to expose further sell interest between $1.3220/50. Support remains to $1.3160, a break to allow for a deeper move toward $1.3120/00. Eurozone bond auctions have passed this morning without any major surprises.
EasyForexNews Research Team