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Free AccessExtends Recovery Above $1.2100. Focus on US CPI/Fed Powell.
- 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.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.