Closed in NY Friday at $1.3215, the rate having recovered off earlier lows of $1.3166 following the lack of progress in Fiscal Cliff negotiations. The pair opened on a buoyant tone in Asia and lifted on strong cross demand to $1.3235, before profit take sales eased. Euro-dollar extended the corrective pullback through $1.3200 in a quiet session to print lows of 1.3188 ahead of Europe. Volumes expected light for quarter/year end flow and with traders on the sidelines, focus remains on whether the US can avert the looming cliff. Support seen on the downside at $1.3166 (28 Dec low), strong demand behind at $1.3160/50 ($1.3159 – Fri Dec 21 low), with stops set on a break of $1.3140. Offers reported at $1.3240, resistance at $1.3257 (28 Dec high), ahead of offers at $1.3280/85 (1.3284 – Thur Dec 27 high).
EasyForexNews Research Team