The pair closed in NY Wednesday $1.3016 after rate had recovered off pressured lows of $1.2985 through to the close. Euro-dollar had been under pressure through the earlier European morning, the rate easing to $1.3014 before it jumped back to $1.3056 on reaction to the sharp downside revision in US Q1 GDP. However, analysts noted that this revision is backward looking and was not seen affecting the gradual improvement in US employment which allowed for the continued sell off in early US afternoon. Rate closed below its 55-, 100- and 200-dma lines Wednesday, which if holds below today to confirm bearish trend in place. Rate eased to $1.3005 in early Asia before fresh demand emerged to extend recovery to $1.3035 aided as EU FinMins reached a deal on bank bail-ins. Rate settled between $1.3025/35 ahead of the European open. Asian traders reported demand between $1.3005/00, then $1.2985/80 with stops below. Stronger European corporate demand seen at $1.2960/50. Resistance $1.3035/40, more at $1.3060/65 with stops $1.3065-70. German employment data at 0755GMT, EZ M3 at 0800GMT and EZ confidence indicators at 0900GMT the morning’s interest ahead of US weekly jobless claims. End month/half year looms.
