The pair closed Tuesday’s NY session at $1.2854 after pulling back from an early session high of $1.2950, the rate touching session lows of $1.2850 just ahead of the close. Rate came under renewed pressure into early Asia, the rate breaking under $1.2850 which tripped minor stops and took rate to lows of $1.2841. Early sales of Aussie-dollar provided the main downside drive, those looking to short this pair bought euro-Aussie then sold out the euros via euro-dollar. A sell off in dollar-yen at the Tokyo fix allowed euro-dollar to recover, the rate edging to $1.2864 before momentum faded. Rate drifted off those highs to $1.2850, finding support at this level again ahead of the European open. Asian traders report corporate end month demand interest in place lower down, one reporting an initial concentration at $1.2810/00, more into $1.2780. Resistance remains into $1.2865 (61.8% $1.2880-41), a break to open a move toward stronger interest at $1.2880.Further offers seen into $1.2900 with stops placed on break of $1.2910. European Commission’s publication of country-specific policy recs, ECB Stability Review and OECD economic outlook in focus. EZ M3 due at 0800GMT ahead of Germany CPI at 1200GMT.
