== $ == Banks Orders Book == $ ==

[Abo Abdullah]

EU Support from KEY moving averages

Recent strong rally took price to resistance from April / May highs at 1.32
Consolidation has held above support from 50 / 200 day MAs at 1.3050/75
Brief dips to 1.30 round number has seen bulls supporting
Look for continuation rally beyond 1.32 in coming days
Copyright (c) 2013 Thomson Reuters - IFRMarkets

[Abo Abdullah]

Commerzbank - USD/JPY Holds The Base Of Its Cloud; Stay Short With A Tight Stop.

USD/JPY last week failed at its 101.60 78.6% retracement and sold off to the base of the cloud circa 98.15. It starts this week sandwiched between these two levels, notices Commerzbank.

"We suspect that overall risk is on the downside. Should the base of the cloud be eroded, it will leave the market under pressure and likely to slide back to 96.75/95.40 en route to the 93.75 recent low. The top of the cloud lies at the 78.6% Fibonacci retracement at 101.60," CB adds.

[Abo Abdullah]

EUR/JPY levels

•Offers 130.70 through 131.10, with the downside interest 130.00/129.50
•Moves below 129.50 are going to be met with more support

[Abo Abdullah]

EUR/USD - Offers 1.3080/1.3100, stops above 1.3110 but sellers again offers 1.3120 in good size .

[Abo Abdullah]

AUD/USD - Offers from Asian accounts at 0.9150/60, in good size .

[Abo Abdullah]

EUR/USD

[Abo Abdullah]

US Market Report

EUR/USD
•Bids building at 1.3080, in better size at 1.3050 and 1.3020
•Sell stops sub-1.3050 and large beneath the 1.30 level
•Offers at 1.3150 and heavy ahead of 1.32
•Buy stops seen above the mid figure and large through 1.32

GBP/USD
•Bids at 1.5050 with more demand noted at 1.5020 and 1.50
•Sell stops at 1.5030 and in decent size sub-1.50
•Offers resting at 1.5140/50 and around the 1.52 level
•Buy stops 1.5160 and above 1.5210

USD/JPY
•Bids from 99.20 to 99.00 in good size from leveraged accounts
•Large sell stops sub-99.00 through 98.80
•Offers lining up at 99.80 and 100.00; larger at 100.50
•Buy stops accumulating above 100.10

AUD/USD
•Bids at 0.9170, 0.9150 and in better size at 0.91
•Sell stops already building sub-0.92, more below 0.9150 and 0.91
•Offers at 0.9250 in good size; more at 0.93
•Buy stops are sizeable above 0.9250 and break above could lead to 0.93 test quickly

EUR/JPY
•Bids 130.00, 129.50/60 and in good size at 129.00
•Sell stops growing larger sub-130.00 and may attract during NY session
•Offers in decent size from 130.80 to 131.00
•Buy stops building above 131.10

KEY NEWS:
•12:30 GMT - US CPI
•13:15 GMT - US Industrial Production
•13:15 GMT - US Manufacturing Production
•14:00 GMT - NAHB Housing Market Index

[Abo Abdullah]

USD/JPY took out the Asian bids at 99.40; now heading towards the 99.20 and 99.00 bids from private money and leveraged accounts; stops in good size sub-99.00

AUD/USD now hitting into CB offers at 0.9230; a break above 0.9250 would see sizeable buy stops triggered and could easily extend the rally to 0.93

EUR/USD took out stops above the big figure; driven by speculative buying, but offers seen larger at 1.3150

EUR/JPY - offers seen from 130.80 to 131.00 but the pair is well-bid this morning and we could see sizeable stops above 131 targeted in the upcoming NY session; good demand 130.10-130.00 with sell stops accumulating below the big figure

[Abo Abdullah]

EUR/USD

[Abo Abdullah]

GBP/USD - Stops below 1.5040 through 1.5030 now vulnerable

EUR/USD - Stops below 1.3090 in focus

[Abo Abdullah]

EUR/USD

[Abo Abdullah]

Short-term environment displaying a USD-positive environment as Core CPI comes in better than expected and funds build long USD positions ahead of Bernanke tomorrow

[Abo Abdullah]

Sentiment quickly turning against the USD as movements of USD long positions disappoint; US leveraged accounts now closing out those long positions

[Abo Abdullah]

Macro demand for EUR/GBP remains strong

[Abo Abdullah]

EU chart focus

Many positive factors within the daily chart, which means the overall bias is for a test of 1.3261, the 76.4% retrace of the 1.3417-1.2755 down-leg. Spot is trading back above the 200-DMA and daily momentum is in the process of turning positive. While 1.3164, 61.8% of 1.3417-1.2755, has been broken, a daily close above that level is needed to strengthen the market. Immediate support comes at Monday's 1.2992 low. Only the 1.2949-1.2966 gap remains a threat to our bullish view, as this region remains at risk of being filled. Martin.Miller at thomsonreuters com