Closed in NY at $1.2532 following a recovery off $1.25205. Rate had seen lows of $1.25153 earlier in the day, with a recovery seen to $1.26205. A US bank was an aggressive buyer in early Asian trade, taking the rate to a ‘dubious’ high of $1.2555 in its effort to trigger stops. Most local traders have $1.2553 pinned as the overnight high. Strong dollar-Asia demand emerged again and led to general dollar demand which pressed EUR/USD down to $1.2518, with market probing for stops below the NY base. Rate recovered ahead of the European open, touching $1.2542 with rate holding on to those late gains at writing. Strong option related demand remains in place ahead of the much reported barrier at $1.2500, a major Swiss name linked to the defence. Stops are noted below the figure, though larger ones are seen through $1.2480/75, with $1.2480 noted to hold one touch option interest, and below $1.2450. Resistance seen at $1.2550/55, a break to open a move toward $1.2580/85 ahead of $1.2595/00 and $1.2620. Market to remain on Greece headline watch for direction.
EasyForexNews Research Team