Month-End Fix Confounds

Much expected USD sales to be seen at the month end fix left market wrong footed as USD demand emerged to confound the speculators. EUR/USD, after touching a 2-year+ high of $1.1909 traded heavy in Europe and into the early NY session, taking rate back to $1.1802., with demand emerging ahead of the fix which edged it back to $1.1851. Rate came under pressure through the fix, short term spec longs quickly moving to the exit which added weight to the downside correction, taking rate down to $1.1762 before fresh demand emerged to cushion. Rate has edged back
above $1.1800 into the NY afternoon. Support now seen at $1.1762 ahead of $1.1750($1.1749 76.4% $1.1699-1.1909), stronger into $1.1700. Resistance now seen at $1.1805/20 ahead of $1.1850, $1.1874 ahead of $1.1900/10. Considering the recovery we have seen through April today's correction seen reasonably shallow. Next week brings US ISM and the Emoployment Report.