EUR/USD: 1.2290With most of Europe on a public holiday it was a pretty this and quiet session, although the Euro remained heavy as talk of Greece leaving the EU resurfaced after the PM Samaras asked for more time to implement the austerity measure that have been imposed for it to receive further bailout funds. German sources replied that Greece knows what the details of the memorandum are, and it doesn't sound like he should bank on getting his extension.
Data out of the US today was mixed and the market pretty much ignored it, although the dollar did retain its bid tone as hopes of any imminent stimulus from QE3 again receded into the background. For the record, the CPI was +1.4%yoy (exp 1.6%) and Industrial Production was +0.6% (exp +0.5%).
Equities were pretty quiet, although the S+P continues its very slow grind higher. The DAX was -0.4%, while the S+P finished at 1405, +0.11% after a very quiet session.
Technically, little has really changed as the market continues to use 1.2300 as a pivot to trade around this week.
The first level to be overcome is now at around 1.2315 (minor), above which lies the day's high at 1.2342. Beyond there, all the familiar resistances are unchanged from previous sessions. 1.2363 (61.8% of 1.2442/1.2240) stands in the way of progress towards 1.2400 and then the recent 12442 high. Above this sees 1.2472 (61.8% of 1.2742/1.2042), the neckline resistance is currently at 1.2520, and above this would see 1.2574 (76.4%).
On the downside, the channel base is at 1.2250, below which minor support should come in at 1.2215 and 1.2200. More important support should be found at the 2 August low of 1.2133. This doesn't look very likely right now and given that the indicators are all running along without any real hint in either direction, I suspect we are in for more listless trade again today. The bias might be very slightly lower, but I would not be too enthusiastic and would look for a range of 1.2220/1.2320 to cover it.
The EU CPI and Philly Mfg Survey will provide today's highlights.
