Closed in NY at $1.3080, off rally extension highs of $1.3132, with rate dipping back to $1.3075 into Asia before picking up fresh demand interest. Real money and leveraged names were again noted buyers, as they had been Tuesday, with triggered stops on the move back above $1.3100 providing the added momentum to take rate on to a session high of $1.31278. Rate drifted lower but demand placed into $1.3100 kept it buoyed and allowed for a recovery to retest the earlier highs ahead
of the European open, but sell interest ahead of the NY high managed to cap. Rate currently trades around $1.3120 at writing. One Asian trader has noted that fresh sell interest has been placed above $1.3125 into the European open. Stops now seen on a break of $1.3132, which if triggered to open a move toward $1.3145/50 ($1.3145 Oct4 low). Decent sell interest has been reported in this latter area with stops noted above. Support remains into $1.3100, a break to allow for a deeper move toward $1.3080/70 with stops below. Focus this morning on the take up of the ECB 3-yr LTRO, mixed views but most see a strong take up as positive.
EasyForexNews Research Team