Release of much stronger than...........>

EURO-DOLLAR: Release of much stronger than forecast US pending home sales Monday

provided a boost for the USD, seen supporting view a V-shaped recovery underway,

with talk also suggesting that month-end models have flipped to a USD buy signal

from earlier indications of USD sell flow, though last night's Wall St close

could provide a neutral signal which would turn full attention onto risk for

direction. Final model predictions awaited. EUR/USD turned lower from its

recovery high of $1.1288 to $1.1220, basically wiping out the earlier intraday

gains, but managed to recover to $1.1243 into the close. Rate stretched recovery

to $1.1252 in early Asia before momentum faded and it eased back to $1.1235.

Recovery to $1.1250 was followed by a stronger drift lower, the move through

$1.1235 into Europe taking it down to $1.1225. Rate currently trades around

$1.1230. 

- Support $1.1220/15, $1.1200, $1.1195/91, $1.1168/63. Resistance $1.1250/52,

$1.1288, $1.1312. 

- France flash CPI(0745BST), EZ flash CPI(1000BST) due this morning. ECB

Schnabel speaks at 1200BST.