Closed in NY at $1.3374 after rate had performed an impressive recovery off earlier Asian lows of $1.3270 to $1.3388 ahead of the NY close. Rate extended its corrective pullback in early Asia, touching session lows at $1.3362 before picking up fresh demand. This buying provided the drive to take rate through that NY high and on to $1.3392 but move faltered ahead of reported decent sized offers placed between $1.3395/1.3405. However, corrective pullbacks remain very shallow and seen keeping focus on the topside into early Europe. The move higher in euro-dollar was aided as euro- swiss broke above key resistance at Chf1.2500, with demand for euro-yen extending this rate’s move above Y120.00 to Y120.71. A break of $1.3405 to expose stops through $1.3405/10, which if triggered to open a move on toward $1.3430. Above here and key level at $1.3485 moves into view, but awaiting to see if the $1.3450 level holds barrier interest. A $1.30-1.35 DNT was recently bought and can expect protection of the topside should we venture near. Support $1.3365/60 ahead of $1.3345/35. China data at the better end of expectations adds to the recent underlying risk-on tone. Light Eurozone calendar, moves to come from cross plays.
EasyForexNews Research Team