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Above $1.21 into Europe. Focus on $1.2125

EUR
MNI (London)
  • Thursday's risk aversion/USD correction reversed through Friday's session with EUR/USD reclaiming Thursday's losses (which had seen rate ease to $1.1994) as it progressed through the 1600BST fix to a high of $1.2100. Rate closed the week at $1.2097.
  • Early Asia saw the USD pick up mild demand, led by demand in USD/JPY, which in turn allowed EUR/USD to ease to $1.2089. However, this USD demand faded post Tokyo fix and rate picked up the momentum to take it through $1.2100.
  • Triggered buying through the figure then edged rate on to a high of $1.2117 before momentum faded, the rate then easing off to $1.2107 ahead of the European open.
  • USD seen under pressure across the board, some traders noting that ECB Lagarde Thursday showed little concern about the recent strengthening in the EUR. US yields currently seen easing into a range, off recent highs, and with vaccine roll out in EZ seen supporting a stronger EUR. Real Money have been noted buyers in recent sessions.
  • Support $1.2100, $1.2080/70 ahead of $1.2050. Resistance $1.2117/19(intraday high/falling resistance off 2021 high Jan06, with talk of resistance into $1.2125 highlighted by Asian traders suggesting possible option barrier. A break here could strengthen demand interest. $1.2133 offers a near term swing target, with the top of the 1.0% 10-dma envelope currently coming through at $1.2140.
  • Germany Ifo 0800GMT. ECB Panetta speaks at 1200GMT, ECB Lane 1300GMT.
  • US Durable Goods 1230GMT
  • MNI Techs: EURUSD bulls returned Friday and in the process the pair traded above resistance at 1.2080. The move higher negates a bearish pattern on Apr 20 - a gravestone doji. Instead, the climb reinstates a bullish outlook and attention is on the resistance zone at 1.2116/19, 76.4% of the Feb 25 - Mar 31 sell-off and a bear channel top drawn off the Jan 6 high. A break of the channel resistance would be bullish. Support has been defined at 1.1994.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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