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EUR/USD Firm in Early Europe, Trying to Stretch Toward $1.2000

EUR
MNI (London)
  • Month-end upon us and the USD remains under pressure. Preliminary model suggestions, released last week, saw strong USD sell signals for today's fixes.
  • There was a fair amount of USD selling through last week so market may be well positioned for an expected challenge on the $1.2000 level, with the YTD high of $1.2011(Sep1) lurking close behind.
  • Technical traders note Friday's close above the $1.1920/26 area keep the recent bullish tone in place.
  • EUR/USD closed Friday at $1.1963, just off the late posted high of $1.1964.
  • Asia posted an opening low of $1.1956 then settled around $1.1960 into Tokyo.
  • As USD/JPY was pressed back below Y104.00 it led general pressure on the USD, allowed EUR/USD to extend its rally to $1.1974, remaining firm through the balance of the session, touching $1.1976(1.618% swing $1.1941-1.1885) into Europe.
  • A break here to expose $1.2000 ahead of $1.2011 but could encounter profit take resistance through this area. Above and rate can edge on to $1.2028/32 ahead of $1.2050. Support $1.1950, $1.1933, $1.1915/00.
  • Germany states/pan-German CPI in focus this morning. MNI Chicago PMI 1445GMT.
  • ECB Enria speaks at 0830GMT, Lagarde at 1030GMT, Hakkarainen at 1400GMT.
  • MNI Techs: EURUSD holding recent gains and has edged higher overnight. The pair has cleared key resistance at 1.1920, Nov 9 high. Clear breach reinforces current bullish conditions and exposes the 1.2000 handle ahead of 1.2011, this year's high print on Sep 1. Key trend support remains 1.1746, Nov 11 low. A break would reverse the trend direction and expose 1.1603, Nov 4 low. Initial firm support lies at 1.1800.
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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