Opened in Asia at 1 3602 with a brief rally to 1 3621

EUR/USD

Range: 1.3552 – 1.3621

Support: 1.3540

Resistance: 1.3640

Opened in Asia at $1.3602 with a brief rally to $1.3621, in thinner trading conditions with Japan on holiday for Foundation Day. Concerns over the uncertainty in Egypt over leadership has led to a risk aversion scenario with the euro falling sharply to a low of $1.3562 before finding some demand and picking up again towards $1.3600.Pressure is again building on the downside as Europe opens as the pair sinks through $1.3560 to a low of $1.3552. Bids are seen towards $1.3540/50 with stops through $1.3540. Further bids are at $1.3500, $1.3475, with stops through $1.3470. European data fairly light ahead, with 0745GMT release of France Balance of Payments, but primary focus likely to be on the US Trade data at 1330GMT.

USD/JPY

Range: 83.21 – 83.53

Support: 83.00

Resistance: 83.70

Trading has been relatively calm with Japan on holiday today. Dollar-yen remains on a bid tone after yesterday’s grind higher with the pair now nudging further exporter offers at Y83.50 ahead of the year’s high of Y83.70 as US treasury yields continue to attract reserve managers. Talk of stops from model accounts and momentum traders from Y83.75. Bids are now seen towards Y83.00 and Y82.50/60. Euro-yen peaked at Y113.45 in early trade before slipping with the euro-dollar to a low of Y113.07 but demand appears to remain with the cross and barring escalations in the Egypt crisis, the pair has the potential to run to Y114.00.

AUD/USD

Range: 0.9970 – 1.0035

Support: 0.9950

Resistance: 1.0100

Asian markets today have seen Aussie attempt a rally to $1.0030 before renewed selling pressure took the pair down through parity to a low of $0.9969 after comments from RBA Governor Stevens suggested that markets were not pricing in a rate hike until later in the year as “reasonable” led the move. Support should be seen around the Feb 1 low of $0/9963 and 100 day moving average at $0.9915. Aussie-yen opened at Y83.58 and edged up to Y83.63 before slipping with the aussie dollar to Y83.20 on the RBA comments, but has since picked up to around Y83.40. Offers remain towards yesterday’s high of Y83.75 with bids some way below at Y82.95/00 and Y82.50/60.

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