Closed Monday’s session at $1.5678, just off lows of $1.5675. Trade through Asia tracked EUR/USD, as the cross was contained within a tight range of stg0.79895/0.8000, with an early push up to session highs at $1.5683 reversing, the move down moving through Monday’s base before closing the gap left by Friday’s NY close at $1.5660 and Monday’s Asia open at $1.5675 as it traded to a low of $1.5656. Rate recovered to $1.5682 ahead of the European open as risk was boosted on the positive performance in Asian equity markets. Resistance seen from $1.5690 and extending through to $1.5705, a break to open a retest of Monday’s highs at $1.5717, with offers seen into $1.5720. Support remains into $1.5650, a break to allow for a deeper move toward recent lows at $1.5630, with stronger bid interest seen between $1.5610/00 ($1.5603 May12 low). For the cross, support remains into stg0.7980 ahead of stg0.7965/60 and stronger demand toward barrier interest at stg0.7950. Resistance stg0.8035/40. UK CBI sales data due at 1000GMT.
EasyForexNews Research Team