Support into 1.3550 once more propped EUR/USD and as a result the European morning has seen the price consolidate the early bounce off the large Asian and option related buying. Dealers speculate over the presence of 1.3550 expiries intraday while Euro Zone data failed to match upbeat expectations and this reinforced the 1.3505/80 range ahead of the NorAm open.
Looking ahead, the offers from 1.3575 to 1.3585 and the option expiries at 1.3600 will come into view should US existing home sales and consumer confidence, both at 14:00 GMT, disappoint. One German name sees this brace as the first test to the sustainability of recent technical-led USD gains. However, over at IFR, they are looking for the data tomorrow, durable goods, to exacerbate concerns over business investment and keep the all-time highs at 1.3666 in view over the medium-term.
Therefore, expect more support on EUR/USD dips in the short-run. Should the Dollar eke further support and offset the Asian Central Bank sales of late then 1.3535 will be a key intraday support level and trigger with a run at 1.3500 then eyed on a clear break.
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