Held and improved on the rally late yesterday prompted by the Iranian Warship news

<p>EUR/USD Range: 1.3552 – 1.3610 Support: 1.3485 Resistance: 1.3650 Held and improved on the rally late yesterday prompted by the Iranian Warship news, opening in […]</p>

Range: 1.3552 – 1.3610
Support: 1.3485
Resistance: 1.3650
Held and improved on the rally late yesterday prompted by the Iranian Warship news, opening in Asia at $1.3568. The pair edged lower to $1.3558 but then attracted some demand from an Asian sovereign and some model funds with the move gathering some momentum, tripping stops through $1.3600 to a high of $1.3610. Stocks turned lower in the afternoon with some sales from real money accounts pushing euro to $1.3552. Talk of very large bids now placed at $1.3550 on the machines with stops below ahead of further buy orders at $1.3520. Data this morning includes ECB current A/C at 0900GMT but main focus will be on this afternoon’s US CPI and the Philly Fed index at 1500GMT.
Range: 1.6093 – 1.6119
Support: 1.6000
Resistance: 1.6200
Recovered strongly yesterday evening as news broke of Iranian collapse catapulting cable back from lows of $1.5987 to $1.6100. Asia opened today at $1.6095 in somewhat calmer conditions edging lower but finding some support at $1.6085 before rallying with the Euro to a high of $1.6118 and then settling back around $1.6100. Support is seen now towards $1.6080/90Euro-sterling remained in a tight range after the strong climb back yesterday from stg0.8367 trading a stg0.8418-45 in subdued conditions. Focus this morning will be largely on speeches from the BOE and MPC’s Sentance at 0935GMT with inflation the major topic, and the CBI Industrial orders at 1100 GMT.
Range: 1.0018 – 1.0051
Support: 1.0010
Resistance: 1.0100
Aussie slipped this morning on some euro-aussie short covering taking the price down to $1.0018, before rallying back to $1.0035 on exporter demand, and extending to $1.0053 as reported buying from an Asian sovereign joined the flow, but failed to trip reported stops around the level and then settled back around $1.0040. Stops now seen through $1.0060 and possibly more at $1.0075, ahead of offers towards $1.0100. Gold prices remain firm on the back of Middle Eastern tensions, adding support to the support of the aussie. Comments from RBA’s Lowe earlier had no impact on the market. Focus today is on the US CPI data and leading indicators this afternoon.

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