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Extends Recovery Above $1.2100. Focus on US CPI/Fed Powell.

EUR
MNI (London)
  • Europe took EUR/USD above $1.2100 to $1.2117 Tuesday with NY extending move to $1.2122 ahead of the close.
  • Early Asia eased rate to $1.2109, as USD/JPY was lifted into the Tokyo fix. USD/JPY retreated post fix and EUR/USD extended recovery to $1.2130 before momentum faded.
  • Real money demand noted in the move up but market described as wary at elevated levels with talk of resistance into $1.2150 and $1.2180.
  • Rate drifted back to $1.2123 ahead of the Europe open.
  • Support $1.2110/00, $1.2090, $1.2067, $1.2055/45.
  • Resistance $1.2130/35($1.2134/35 76.4% 1.2190-1.1952/Broken sppt Nov04), a break to expose $1.2151/56(50% 1.2349-1.1952/Jan29 high).
  • Germany final CPI at 0700GMT, France IP 0745GMT, more focus on US CPI at 1330GMT. Fed Powell speaks at 1900GMT.
  • ECB de Cos 0930GMT, Lagarde 1300GMT, Panetta 1300GMT.
  • MNI Techs: EURUSD continues to extend recovery off the Feb 5 low of 1.1952 low. Friday's price pattern is a bullish engulfing reversal and remains in play suggesting scope for a recovery and also highlights a base at last week's low. Strong resistance 1.2092/98, the 50- and 20-day EMAs, gave way yesterday, opening $1.2156 in the near-term. On the downside, sub 1.1952 levels would resume recent bearish pressure.
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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