Closed in NY Friday at $1.3464 after easing off extended NY session highs of $1.3480, with rate buoyed above $1.3450 into the close. Early sales into Asia saw rate squeeze down to pressure some of the weaker spec longs, the dip under $1.3450 to $1.3443 triggering minor stops before fresh demand interest emerged. Rate recovered to $1.3471 before meeting resistance with rate then steeling between $1.3450/70 through to the European open. Offers said to remain in place from above $1.3470, strengthening from $1.3480 through to much reported barrier interest at $1.3500 ($1.3488 2012 high; $1.3490 50% $1.4940-1.2040 May’11-Jul’12). Large stops have been reported in place through $1.3505/10. Minor offers then seen into $1.3520 ahead of stronger interest toward $1.3550. Support $1.3450/40 with stops below. ECB releases M3 data at 0900GMT, with US durable goods data at 1330GMT to provide the data interest on the day. Interest for the week with US FOMC and US Q4 GDP Wednesday, ahead of US employment report Friday. Yen action remains key to direction.
EasyForexNews Research Team