Spot traded close to its longer-term trend-line top ahead of the US payroll data but after revisions boosted the Dollar EUR/USD was sold back to its 10-Day M/A line (then at 1.2685). Yet, the price remains buoyant and trading continues to trade in the upper half of the 2006 range from 1.1802 to 1.2978 (mid-point at 1.2390) and above the 50% Fibo of the sell-off from 1.3666 to 1.1641 at 1.2653.
This technical upwind combined with the hope that the ECB will hike rates once more this year should keep the EUR underpinned and the talk of central bank & reserve manager bids from 1.2690 back to 1.2675 certainly reflects this belief in the short-term.
Today and weaker than expected Euro Zone data weighed on the EUR while speculation of further hawkish Fed comments kept the USD in touch. Stops sub-1.2675 support are under threat while looking ahead the Moskow comments at 13:45 GMT & Weber speech at 15:45 GMT will provide the early risk into North American trading. Batches of sellers are camped at 1.2715/20 & 1.2740/50 while option players look to the 1.2700 expiries intraday to help weigh.
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