The pair closed in NY Tuesday at $1.3545 after rate had been pressed to intraday lows of $1.3534 following the break of support in the $1.3580/85 area. Euro remained heavy through the NY session with recovery efforts capped below $1.3560. Euro-yen’s break below its 200-dma at Y138.68 Tuesday was watched on the close, the rate finishing the session at Y138.64 (the first close below the 200-dma since Abenomics) and was expected to provide further negative weight on the euro. Macro sales of euro-dollar were cited as rate pressed lower in Asia, the rate trading to an extended low of $1.3522before buyers emerged as a decent bid on platforms at $1.3520 was spotted. Traders mentioned strong demand seen in place from $1.3520, through the post ECB low of $1.3503(Jun5), and toward a well reported option barrier at $1.3500. Stops are noted below this level, but larger ones reported on a break of $1.3480. Whilst rate holds below the breakout area of $1.3580/85 is seen keeping a negative bias on the rate, a break of $1.3605 now seen needed to relieve pressure. Interim resistance seen at $1.3550/60. EZ speakers seen through the day with little on the data calendar.
