Euro-dollar opened the week around $1.5010 and was pressed to session lows of $1.4981 as rate tracked early pressure on cable, with CTA's noted sellers in the move. Rate met decent demand interest on the approach to $1.4980 (NY low $1.4985) before reversing. Traders suggested sovereign demand was seen at the lows aiding the reversal, with reported comments from PBOC researcher Zhou (China should raise proportions of euro and yen in reserves) adding to upside momentum that took rate to highs of $1.5064. Rate eased off highs, meeting support at $1.5025/20 before lifting again ahead of the European open, beginning the session around $1.5040/45. Offers said to remain in place to $1.5065, a break above to open a move on toward $1.5075/85 with area said to hold a mix of sell interest and weak stops, with larger stops said to be in place above $1.5105, though offers to $1.5100 expected to make upside progress sticky. A clear above $1.5105/10 to expose $1.5150, the level said to hold large digital option interest. Bids remain between $1.4980/70 with stops below.

The euro remains in it's rising October channel of $1.4983/1.5201 as daily studies reach stretched levels and risk a bear-cross. The pair also remains within the Bollinger band and 1% MAE, which are both rising targets at $1.5120/40.

RES 4: $1.5201 Top of October channel
RES 3: $1.5163 76.4% of $1.6039 to $1.2329
RES 2: $1.5120/40 Top of the daily Bollinger band, 1% MAE
RES 1: $1.5064 Hourly highs

CURRENT LEVEL: $1.5031

SUP 1: $1.4983 Support line from 2 Oct
SUP 2: $1.4845 High 23 Sep
SUP 3: $1.4610/50 1% moving average envelope, 21-day moving average
SUP 4: $1.4480 Low 2 Oct, Base of Bollinger band

Source: Nordmarkets

Source: Nordmarkets