$1.1800 Remains the Attraction

Recovered off an early NY low of $1.1787 (market thinned by the Columbus Day holiday) to $1.1817 before easing off to $1.1802 through the 1600BST fix, closing a lack lustre session around $1.1813. Consolidation in opening Asian trade before risk was given a knock by reports in a set back for the J&J COVID-19 vaccine, the company reported to be pausing trials after a patient falls ill. EUR/USD dropped to $1.1791 though move reported to have met willing buyers during the dip(some EUR/AUD demand noted) allowing rate to recover back above $1.1800 into Europe. Traders note that E2.7bln of options roll off at today's NY cut and could be helping to keep rate anchored close by. Germany final CPI at 0700BST but more focus on Germany ZEW at 1000BST(median Survey Expectations 72.0; Current Situation -60.0). US inflation data due at 1330BST. ECB de Cos speaks at 1600BST. Support seen at $1.1791/87, more close behind into $1.1780. Break here to open a deeper move toward $1.1760/50. Resistance $1.1820/30. The 55-dma comes in today at $1.1801, the rate having closed above for the second day Monday but hasn't so far been able to build to any great extent. Tonight's close will be in focus, above and the recent recovery should gain further strength.

MNI Techs: EURUSD bulls have paused for breath with the outlook remaining bullish. The pair traded higher Friday, pushing through resistance at 1.1808, Oct 6 high. The breach reinforces S/T bullish conditions and confirms the clear break of trendline resistance drawn off the Sep 1 high. Price moved through the trendline on Oct 5. Further gains would open 1.1859 next, 61.8% of the Sep 1 -25 sell-off. 1.1725 marks the key near-term support.