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Extends Gains to $1.2072

EUR
MNI (London)
  • Monday's break of $1.2000 took rate to a high of $1.2048 into the NY open but struggled to build further in the US session. Rate eased to $1.2015 with recovery efforts through the NY afternoon capped around $1.2040.
  • USD came under further pressure in Asia which allowed EUR/USD to extend gains through $1.2050 and on to $1.2072 before momentum faltered. Corrective pullback so far meeting support at $1.2061 into Europe.
  • EUR/USD recovery seen respecting the topside of its 1.0% 10-dma envelope, currently coming through at $1.2076. A break of $1.2080 to expose $1.2103(61.8% 1.2349-1.1704) ahead of $1.2113/16(Mar03 high/76.4% 1.2243-1.1704). Above here and the falling trend resistance line, drawn off the 2021 high at $1.2349 comes through at $1.2131(see MNI Techs below).
  • Support $1.2050/40, $1.2015/00, $1.1992(61.8% $1.1943-1.2072).
  • Germany PPI 0600GMT. ECB de Cos speaks at 1250GMT.
  • Focus on Thursday's ECB Monetary Policy announcement, Friday's release of flash PMI's.
  • MNI Techs: The pair is firmer again today as bullish conditions continue to dominate, reinforced too by yesterday's confirmed break of the former key short-term resistance at 1.1990, Mar 11 high. Attention is on 1.2116 next, a Fibonacci retracement ahead of 1.2131, a bear channel top drawn off the Jan 6 high. On the downside, Monday's intraday low of 1.1943 marks initial support.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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