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$1.2190/1.2200 Moves Within Touching Distance

MNI (London)
  • Recovery off the Feb17 low of $1.2023 extended further Monday, albeit with a European morning dip to $1.2091, retested the Feb16 high at $1.2169 which capped.
  • Rate eased to $1.2151 before closing at $1.2158.
  • Asia picked up the recovery baton, took rate through $1.2169 and on to $1.2177 before it met headwind resistance. Asian traders noted resistance in EUR/JPY at and above Y127.80 which was seen providing the main counter.
  • Rate eased to $1.2165 then settled around $1.2170 ahead of the European open.
  • Resistance $1.2177, stronger between $1.2190/97(Jan22 high/61.8% $1.2349-1.1952) with talk in Asia that a break of $1.2200 to prompt further demand. Leveraged accounts reported to have joined IMM accounts and have added to longs. Break of $1.2200 to expose $1.2223/30(Jan13-11 highs) ahead of $1.2255(76.4%).
  • Support $1.2155/50, $1.2130/10.
  • Italy Ind. Orders/Sales 0900GMT, EZ CPI 1000GMT.
  • US Housing data at 1400GMT, Richmond Fed 1500GMT with main focus on Fed Powell Semi-Annual MonPol Report at 1500GMT.
  • UST yields, Fed speak and US fiscal Stimulus headlines remain key. Month-end approaches. US corporate USD demand expected to emerge Tue/Wed, month-end models suggest USD sales to be seen at Friday fixes.
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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