The pair opened in Asia at $1.3514, following a $1.3492 to $1.3525 range in the US last night. It went up to an early high of $1.3523 as the dollar encountered some early weakness, but failed to break above the overnight high as risk sentiment deteriorated in line with weaker regional stock markets. Euro-dollar sank to a $1.3499 low in early tradfes, but rebounded after that to around $1.3510, the pair’s losses resumed again after the aussie fell on the RBA’s statement, this time marking a low of $1.3496. Euro-dollar last traded at $1.3498 and further losses are likely to see the pair take out the overnight low of $1.3492, also marking the 50-day moving average while below $1.3490 to open up demand interest near the 55-day at $1.3481, ahead of larger bids at$1.3450/40. On top, the euro needs to recover the $1.3582 high from Friday to relieve the bearish focus. A close above the pivotal $1.3649 level remains needed to confirm a break back above the 21-DMA and see focus shift back to tests of the Oct monthly high at $1.3832.
