The pair traded a $1.3696 to $1.3787 range in the US last night, hitting that low soon after the FOMC statement was released. Euro-dollar started in Asia around $1.3736 and initially slipped to an early $1.3720 low. It then recovered as the dollar gave back part of the overnight’s pots-FOMC gains with euro-dollar then carried up to a $1.3739 high in Asia today. The pair also then gave back the gains as a weaker euro-yen then dragged it down following the BOJ’s policy decision. Euro-dollar steadily gravitated lower through the entire morning, pausing briefly at $1.3700 before then sliding through that and below last night’s low for $1.3689 in the early afternoon. Euro-dollar was last down near the day’s low at $1.3696 ahead of the European open. Further continuationlower is still favored ahead, initially targeting the key $1.3651 Oct 21 low with the 21-day moving average coming in just ahead of that at $1.3654. A close below area then sees focus ratchet lower to the $1.3457-77 support region. Up top, a close above yesterday’s high is needed to relieve the current bearish pressure while a close above the $1.3832 high from Friday is needed to kickstart topside momentum.
