Closed in NY at $1.2730, having been pressed to session lows of $1.2722 on continued paring back of risk positions prompted by fall out from the Greek political impasse and forecast effects on the euro. Rate edged to an early recovery high of $1.2738 on reported profit take buys, but upside momentum quickly faded. Rate then drifted lower, finding initial support ahead of the NY lows, recovered to $1.2734 before coming under heavier selling from a major NY bank. Rate broke below $1.2720, triggering stops which added to the weight as rate targeted the barrier at $1.2700. Rate touched a low of $1.26986 before bouncing back on profit take buying, following the pressured move lower. Rate edged back to the $1.2720 into the European open. Bids now seen into $1.2680/70 ahead of $1.2650 and the 2012 lows at $1.2624 (Jan13). Traders also highlight the large digital option at $1.2625. Offers $1.2730 through to overnight highs at $1.2738, with stops above $1.2740.A break here to open a move toward $1.2760/70, with stops through $1.2775/90. Larger offers $1.2810.
EasyForexNews Research Team