Closed in NY Friday at $1.3250 after rate had pulled back from post US GDP highs of $1.32706 to $1.3235. Rate came under early sell pressure, on the back of EUR/JPY sales into a holiday thinned Asian session, Japan and China closed, the rate pressed to a low of $1.3228 before meeting demand interest (NY low $1.3226). Recovery saw rate push to highs of $1.3253 with rate pressuring the high into early Europe ($1.3255 61.8% $1.32706-28). A break above here to open a move toward $1.3261 (76.4%) ahead of a retest on Friday’s high at $1.32706, with offers seen from here toward $1.3280 with stops above. Support noted at $1.3230/20. A holiday thinned week expected to lead to further subdued trade though interest should perk up into the end of the week with the ECB rate decision and Draghi press conference Thursday and key US employment report Friday. Friday’s softer than forecast US GDP data was seen opening further the door to QE3 with the dollar seen pressed as a consequence.
EasyForexNews Research Team