Opened early Europe at $1.2468, EUR/USD closed in NY Tuesday at $1.2503, after seeing pressured lows in this session to $1.2461 after market reacted to a further downgrading of Spain by Egan Jones. Rate came under renewed pressure into Asia which extended the rate’s corrective pullback from the late NY recovery high of $1.2510 to $1.2476. US name demand emerged but recovery faltered around $1.2485 as it met option related supply protecting $1.2500. Release of poor Australian retail sales data dented risk and took EUR/USD through the NY base, triggering CTA stops sub $1.2460, before basing at $1.24572. Rate recovered to $1.2473, opening Europe around $1.2466. Strong demand in early Europe met supply around $1.2475/80 before rate turned lower. Strong support ahead of barriers at $1.2450 kept rate buoyed for a while before the eventual trigger took rate to $1.2438. Weak Eurozone sentiment data pressed rate down to $1.2436, with rate holding heavy ahead of the NY open.
EasyForexNews Research Team