Closed in NY at $1.2864, having extended its Wednesday’s recovery rally through European highs of $1.2847 to $1.28655 during the afternoon session as talk swirled suggesting a Greek deal could be in place by Friday. Risk appetite remained in place into early Asian trade, allowing rate to push above the NY high and on to $1.2880 ($1.2879 Jan13 high, key tech). Rate reversed off highs as short term specs were left disappointed following the failure to trip stops above this level, with the corrective pullback given added weight by the release of weaker than expected NZ CPI, followed by weak Australian jobs numbers, which took it to lows of $1.2842. Rate was recovering off lows ahead of the European open, currently trading around $1.2863 into early Europe. Risk remains in favour with early traders again turning their attention toward the $1.2880 level and the stops placed above. One trader though noted that the retail skew seen moderately favouring buyers over sellers which could suggest upside progress may prove difficult. Comment on Greek debt talks remain key. Offers seen to $1.2900. Support $1.2840.
EasyForexNews Research Team