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EUR/USD Pullback Extends in Asia

EUR
MNI (London)
  • EUR-USD corrective pull back away from last Wednesday's 2021 posted high of $1.2349 extended further in Asia to $1.2167, with rate holding heavy ahead of the European open.
  • Move seen despite reported comments from US President Elect Biden on Friday that additional stimulus would be top of the docket in the months ahead.
  • Fed Clarida said Friday that he did not expect any tapering until until 2022.
  • Technical traders have noted in recent sessions that EUR/USD was open to a corrective pullback(see MNI Techs) though longer term outlook remains for rate to move higher.
  • Support now seen at $1.2167 ahead of $1.2150, stronger into $1.2130. Resistance $1.2230(Asia high), $1.2237(38.2% $1.2349-1.2167) ahead of $1.2250/60.
  • Option expiries of note for today's NY cut include $1.2095-1.2110(E1.6bln), $1.2125-35(E831mln), $1.2150(E669mln), $1.2200(E879mln), $1.2250-60(E1.1bln), $1.2295-1.2300(E3.8bln-EUR puts), $1.2310-15(E2.1bln-EUR puts).
  • EZ Sentix Investor Confidence due at 0930GMT in an otherwise data light session.
  • ECB Vasle speaks at 0900GMT, ECB Lagarde at 1440GMT.
  • Fed Bostic and Kaplan speak at 1700GMT and 2300GMT respectively.
  • MNI Techs: EURUSD has started the week on a softer note extending the pullback from last week's high of 1.2349, Jan 6 high. Price action has traded through the 20+day EMA and this exposes support at 1.2130, the Dec 21 low. A breach here would open the 50-day EMA at 1.2083. Momentum studies have recently signalled an overbought condition. The current pullback is being seen as a much needed correction. 1.2230 is initial resistance.
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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