Closed Monday’s North American session at $1.2542, off pullback lows of $1.2525, after rate had been pressed back from early European highs of $1.2625 as early risk on tone was reversed on widening Eurozone peripheral bond spreads. Rate posted early highs into Asia at $1.2549 before macro sales were cited for taking the rate down to lows of $1.25093, the move filling the gap from Friday’s NY close $1.2516 to Monday’s Asian open at $1.2544. The dip quickly attracted buyers, with traders noting decent option interest below $1.2500 with barriers noted at $1.2480, $1.2475, $1.2470 and $1.2450, with larger interest sitting down at $1.2400, the recovery boosted as well by a positive showing in Asian equity markets that took the rate up to $1.2543. Bids said to remain in place between $1.2510/00, a break back below the figure to expose Friday’s low at $1.2495. Option related demand then expected to emerge ahead of $1.2480. Resistance seen at $1.2549/53 (Asia high, 38.2% $1.2625-1.2509) ahead of $1.2570/80 and $1.2600. German state/national CPI to be released during the day. Headlines remain key drivers.
EasyForexNews Research Team