Spiked to $1.2611 in late European trade on reports that ECB President Draghi would back up buying sovereign bonds with a maturity of up to 3 years, later easing to $1.2590. Focus turns to the ECB meeting on Thursday where more details of a new sovereign bond purchase program are expected to emerge. The pair opened in Asia around $1.2580 and lifted on support from local names in early trade, rate extended gains on reserve manager demand and triggered stops through $1.2610. Swiss name supply briefly capped but couldn’t prevent further stops flushed through $1.2625, before profit take sales eased and the rate consolidated above $1.2600 into Europe. On the topside resistance seen at $1.2638 (spike high post Bernanke – Friday), through here and offers ahead of the 1.2650 barrier with stops set. Reported bids at $1.2585/80, a break to tech support at $1.2573 from the 100 dma, ahead of bids at $1.2565/60.
EasyForexNews Research Team