The pair opened in Asia this morning around $1.3805, after a $1.3374 to $1.3814 on Friday in the US. It was carried higher by a stronger euro-yen rate amid the morning’s risk-on theme. Euro-dollar continued to be held up through the early hours of the morning and breached the US high to trade $1.3818 soon after Asian stock markets got underway before the gains were capped. According to dealers, sell orders surrounding the $1.3830 key resistance level were strong enough to curb the pair’s initial gains. Those offers are said to still be in place, with $1.3833 seen as a 61.8% Fibonacci retracement level of the $1.4940 May 2011 to $1.2042 Jul 2012 move. Euro-dollar eased to $1.3800 in the late morning and then slipped below that for a low so far of $1.3795. The pair’s upside potential remains in place according to the dealers but most are waiting for a more decisive break of $1.3830 for further gains. Further up, $1.3858 marks a weekly high from Nov 2011 with a move back below the $1.3741 low from Oct 23 needed to relieve the immediate bullish pressure, while stops are also noted below. Overall, back below $1.3650 is needed to shift focus back to the $1.3460-75 support region. Euro-dollar was last at $1.3800.
