Into European trading and EUR/USD had managed to attain a slight bid-tone. Asian trading saw sizable stops removed on the break below 1.2970 and 1.2953 printed. However, the emergence of central bank bids and option related interest (linked to 1.2950 option barriers) helped trading bounce.
Yet selling into the rebound strength was always expected and the early European bull-run was soon overcome by the standing supply into the 1.30 level. Talk of official sellers from the 1.3005 level back to 10 has also dissuaded buyers and into the North American open and the price is holding near 1.3000. Solid two-way continues but a break above 1.3010 now looks needed to instigate decent follow-through with stops then found en-route to 1.3020.
Should 1.3010 remain intact then a return to the 1.2975/85 comfort area is likely. Looking ahead, the 13:30 GMT release of the latest US Trade data (Nov), expected at a deficit of USD 59.9Bln, is widely expected to garner the direction for the pair for the latter part of the session. Elsewhere, the 1.2900 & 1.3000 strikes could also impact trading into the NY cut at 15:00 GMT.
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