Opened around $1.0275 in early dealings with volumes seen light following the US Independence day holiday. Trade contained in a tight range before jumping to $1.0285 on release of marginally better than expected May Trade balance data. EUR/AUD pressed lower to A$1.2191 before a bout of profit take demand from prop accounts recovered to A$1.2220, aussie pared gains to $1.0255. Rate extended losses to $1.0245, before making a late recovery to $1.0255 ahead of the European open. Traders note key technical levels from the 100 & 200 Day MA’s at $1.0256/58, support seen at $1.0245/40 ahead of strong demand into $1.0200 with stops set. Topside resistance at $1.0300, stronger behind at $1.0320 (Asia 4 July high). Traders expecting a quiet open to the European session with all eyes on the ECB rate decision later for clear direction.
EasyForexNews Research Team