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Recovery Efforts Remain Soggy

EUR
MNI (London)
  • USD demand through Monday's session allowed EUR/USD to extend its corrective pullback(off last Wednesday's high of $1.2113), the rate touching $1.1844 ahead of the close.
  • USD/JPY pushing above Y109.00 in early Tokyo pressed EUR/USD to a low of $1.1836 but managed to recover to $1.1867 as EUR/JPY then played catch up on the USD/JPY rally.
  • EUR/USD settled back between $1.1850/60 ahead of the European open.
  • Buoyant UST yields (seen since Thursday's Fed Powell comments which failed to push back on rising UST yields then Friday's stronger than forecast US NFP) continues to draw USD demand.
  • Talk in Asia that IMM and leveraged names have begun to pare long EUR/USD positions which has added to the downside weight.
  • Support $1.1836, $1.1829/20(200-dma/100-mma) with stronger interest into $1.1800. A break here to expose $1.1779/72(76.4% 1.1603-1.2349/1.618% swing 1.1952-1.2243)
  • Resistance $1.1867, $1.1887(Hourly high NY Mar08), $1.1900/15.
  • Germany Trade 0700GMT, EZ GDP, Employment 1000GMT with the OECD publishing its interim economic outlook at same time. ECB Thursday moving into view, no change widely expected, focus on press conference and any comments on EUR yields.
  • MNI Techs: EURUSD outlook deteriorated further Monday as the current bear leg accelerated. Recent break of key support at 1.1952, Feb 25 low continues to weigh on the pair. This confirmed a resumption of the downtrend that started February 6. Monday's sell-off signals scope for a test of the 200-dma at 1.1825 ahead of the 1.1800 handle, Nov 23 low. Initial resistance is seen at 1.1952, the recent breakout level.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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