The pair was carried up to a $1.3548 high overnight in the US as rate cut expectations were pared back and aided by MNI’s ECB sources article supporting that view. The pair however failed to hold those gains amid rumors of strong sell interest at $1.3550, some talk of option interest there, before euro-dollar started this morning at $1.3513. Euro-dollar traded to early lows of $1.3501 after the aussie weakened on the jobs data, but recovered then to re-take the earlier highs at $1.3519. The pair continued to plod higher and traded a $1.3526 high in the afternoon and was last at $1.3524, with the ECBdecision now clearly in the market’s crosshairs. But sellers are expected to continue to cap euro-dollar ahead of $1.3550, while further up a close above that would see the immediate focus shift to a test of the 21-day moving average at $1.3630.
