Closed in NY at $1.2397 after rate had extended its recovery off European morning lows of $1.2376 to $1.2443, falling just short of Monday’s highs at $1.2444, with protection of the much reported barrier at $1.2450 countering. The corrective pullback extended into early Asia, tripping stops below $1.2390 before meeting support at $1.2377. Rate recovered, making a brief show above $1.2400 ($1.2403 high), but reported sell interest placed above the figure countered the move which saw it squeeze back to $1.2386 ahead of the European open. Another quiet session in Asia with rate remaining rangebound awaiting developments in the Spain and Italy debt support plan for direction. Bids reported into $1.2370, with Eastern bloc demand interest also noted below this level. Further demand noted between $1.2360/50 ahead of recent lows at $1.2342 (Aug 6). Resistance seen above $1.2400, with further interest noted into $1.2420. A break here to open a move toward stronger resistance area between $1.2440/50. Barrier interest remains at $1.2450. Stronger offers begin from $1.2485 through to $1.2500.
EasyForexNews Research Team