EUR/USD Trades With Upside Bias

Rate clears the 1.3000 handle and extends ranges on stop-driven trade. A pullback is likely now and I would look for the 1.2700 handle to hold on a dip. Hook reversal showing from the toolbox suggests aggressive traders can buy the rate on dips. Rate possibly getting spillover effect from GBP. Overnight equities stronger also helping to lift the rate a bit. Support also from cross-spreaders as they unwind Yen. Official interest noted traders say.

Rate is an absolute screaming buy in my view-I can’t see further weakness being ignored by the buyers; conditions are almost right to buy on the net pullback. If oil rallies it might take EURO with it. Traders note stops building above the market along with offers. Expect more two-way action with upside bias; traders note the rate is finding profit-taking bids on dips so far despite the uncertainty in the market.

Data due Friday: All times EASTERN (-4 GMT)

3:00am EUR German Retail Sales m/m
6:00am EUR CPI Flash Estimate y/y
6:00am EUR Italian Prelim CPI m/m
6:00am EUR Unemployment Rate

Resistance 3:  1.3350
Resistance 2:  1.3300
Resistance 1:  1.3229/30
Latest New York:  1.3066
Support 1:  1.2950
Support 2:  1.2880
Support 3:  1.2800

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