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EUR/USD Retains Buoyant Feel But $1.1850 Keeps it in Check

MNI (London)
  • EUR/USD extended its recent recovery to $1.1869 in early Europe Monday. However, move was held in check by reported decent sized option interest, $1.1850 holding the strike at today's NY cut for E2.1bln of EUR calls.
  • As momentum faded rate eased off to $1.1814 in early NY before risk gained another boost on vaccine reports from Moderna (95% efficacy with easier storage).
  • Rate recovered to $1.1857 ahead of the close.
  • Bid tone carried over into Asia, rate edging on to $1.1867 before momentum faded again, easing off to $1.1854 ahead of Europe.
  • Mentioned option interest looks to be anchoring the rate though Asian traders have reported buoyant feel for the rate.
  • Support seen at $1.1835/30, stronger $1.1815/00. Resistance into $1.1870 ahead of $1.1900 with stronger interest $1.1920/23(Nov9 high/78.6% $1.2011-1.1603).
  • Light EU data calendar. ECB Lagarde speaks at 1600GMT.
  • US Retail Sales at 1330GMT, Cap.Ut./IP at 1415GMT.
  • MNI Techs: The move lower between Nov 9 - 11 is considered a correction and a bullish tone remains intact following the recent breach of 1.1881, Oct 21 high. The break higher opens 1.2011, Sep 1 high with the immediate bull trigger at 1.1920, Nov 9 high. On the downside, initial firm support is at 1.1746.
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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