EUR/USD – Low print was $1.2944 in small, $1.29448 in regular, a trader confirms, and pair has rebounded to $1.2960 as some see that dip as a buy opportunity, at least short-term. Bids eyed at 41.2900/10 area, just under the Monday lows seen in those few centers that were open. Flows modest still as market awaits return of more players.
EUR/GBP – Breaks under reported support/buy interest placed between stg0.l8315/10 with move exposing the reported barrier at stg0.8300. Rate touches a low at stg0.83005 but holds heavy, currently around stg0.8302. A break of stg0.8300 expected to initially meet profit take demand, following pressured move lower, a clear lower to allow for a move toward next support at stg0.8285/80 (stg0.8285 2011 low and next barrier at stg0.8280).
GBP/USD – Extended lows to $1.5580, after reported stops sub $1.5590 were triggered, with rate able to recover back to $1.5615 as EUR/GBP broke lower toward a stg0.8300 option barrier. GBP currently trades around $1.5605 as the cross finding the stg0.8300 difficult to break below leaving GBP to track EUR/USD moves.
EUR/JPY – Continues on a soft tone through support to fresh lows of Y99.31. Demand seen into Y99.25 which holds the Bollinger band, ahead of Y99.15/10 (Y99.10 – 2 Jan intraday low).
GOLD – Trade in Feb COMEX Gold is choppy this morning, back down under $1,600 and recently off $3.30 at $1,597.20 as the US dollar index firms. In morning comments, CitiFX technical analysts say Gold may trade as low as $1,550 before turning and rallying towards $2,400. “Only a weekly close below $1,535-1,555 would make us think the correction could be deeper, but would not alter our big picture view,” they said.
EasyForexNews Research Team