Closed in NY Monday at $1.3182, the rate recovered off pullback lows of $1.3173 after earlier posting a high of $1.3228. Early Asian demand lifted euro-dollar to $1.3220 on hopes to resolve the fiscal cliff, before profit take sales soon eased to trade a tight range. Macro demand re-tested intraday highs, before the rate spiked to $1.3300 as news hit the wires that the US Senate and House of Representatives passed a bill by 257 votes to 167 in order to avert the Fiscal cliff. Risk appetite increased throughout the session, before the pair eased to $1.3270 ahead of Europe. On the topside initial resistance seen at $1.3308 (19 Dec high), with stops behind on a break of $1.3320. Through here and strong offers ahead of the $1.3350 barrier, with stops set ($1.3349 – Upper Bollinger band), more strong offers at $1.3380. Data release light in the US today with highlights from ISM Manufacturing at 1500GMT.
EasyForexNews Research Team