Closed in NY at $1.2280, off extended recovery highs of $1.2330, with rate driven from earlier session lows Thursday of $1.2118 on reaction to ECB Draghi comments that the ECB would do everything within its mandate to support the euro. EUR/USD continued the NY afternoon consolidation tone, with early trade contained within a tight $1.2271-87 range. Model demand extended the highs to $1.2291 but met decent supply from offers placed above $1.2290. Rate retained a firm tone into early Europe, extending the topside to $1.2292, currently trading around $1.2288. Market commentators have noted that no reaction to Draghi comments have been heard from Germany, usually very quick to react, noting that Merkel is away for summer vacation. Market will be wary of taking the EUR higher, now awaits concrete action from the ECB following comment. Offers $1.2290/00, stronger at $1.2330/35 (NY high and $1.2335 Jul19 high respectively). Talk around of decent stops above $1.2340 with next area of noted resistance seen in the area between $1.2390/00. Support seen from $1.2260 and trailing down to $1.2230.
EasyForexNews Research Team