Closed in NY Friday at $1.4475, with rate coming under early downside pressure into Asia

<p>EUR/USD Range: 1.4441 – 1.4485 Support: 1.4400 Resistance:1.4500   Closed in NY Friday at $1.4475, with rate coming under early downside pressure into Asia as […]</p>

Range: 1.4441 – 1.4485
Support: 1.4400


Closed in NY Friday at $1.4475, with rate coming under early downside pressure into Asia as the dollar pared back some of Friday’s losses as market reacted to the stop gap deal in the US to prevent a government shutdown. Rate met support around $1.4450 before bouncing back, the move up led by euro-yen demand as this rate broke above Y123.00 to Y123.33. Euro-dollar rallied to a high of $1.4485, just shy of Friday’s NY high of $1.4489, with option linked offers placed ahead of the next barrier at $1.4500 able to counter. Reversal in euro-yen saw euro-dollar correct lower, posting lows at $1.44414 before settling around $1.4450 into early Europe. Asian central bank interventions noted overnight and expected to provide euro-dollar demand into Europe on reserve balancing.

Range: 1.6346 – 1.6388
Resistance: 1.6390


Rate bounced to a session high of $1.6392 on cross yen led trade, reversing back as it continued to track cross yen, sterling-yen correcting back from highs of Y139.50 to Y138.55, easing to a session low of $1.6350. Cable slowly recovered, edging back to $1.6380 before squeezing back to retest lows ahead of the European open. Euro-sterling, which had been a significant driver for the pound into late last week, was contained within a tight stg0.88275/375 range. UK inflation data Tuesday seen as key. Cable support remains at $1.6350, a break to allow for a deeper move toward $1.6325/20 ahead of $1.6300. Resistance noted between $1.6390/00, a break to expose Friday’s high at $1.6430. Above here and stronger offers noted between $1.6450/60.

Range: 1.0543 – 1.0579
Support: 1.0530
Resistance: 1.0600


Opened in Asia at $1.0565 and remains firm despite the weekend aversion of a US government shutdown, edging up to $1.0576 as early cross buying tripped an aussie-yen barrier at Y90.00, but then slipped back on strong profit taking in aussie-yen, to a low of $1.0539, before moving higher again. Strong Chinese data, gold prices and M&A talk of BHP buying part of Shell’s Woodside Energy has helped to keep the pair buoyed. Bids are seen at $1.0535/40 with more at $1.0500, and option related offers are layered ahead of Friday’s high of $1.0583 and a barrier at $1.0600. Above here lie further offers $1.0620/30.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.