Closed in NY at $1.2577, off late session extended lows of $1.2557, with rate continuing its recovery through Asian trade to an overnight high of $1.$1.2617. Move up was aided on a mix of short covering, prompted in part by position adjustment ahead of the two-day FOMC meeting, as well as market reacted to positive comments from G20, a draft statement set out the EU’s aim of bringing about closer integration of the banking system as well as steps toward tighter fiscal coordination. Traders continue to watch Greece, as parties there try to form a coalition government following the weekend’s election, with Spanish debt woes also of note. Resistance seen at the overnight high of $1.2617, a break to open a move on toward $1.2630 ahead of $1.2650/55. Support seen at $1.2580 ahead of a retest of Monday’s low at $1.2557, with bids seen from here and extending to $1.2540 ($1.2542 Thur Jun14 low). Stops noted below $1.2540, a break to allow for a deeper move toward $1.2525/20. Germany ZEW due for release at 0900GMT and expected to show some further deterioration.
EasyForexNews Research Team