The pair opened at $1.3696 this morning following a $1.3689 to $1.3717 range in the US last night. It witnessed a slight gap down at the start of the session today and was held near $1.3691 before the positive open in Japanese stocks lifted euro-yen up. Euro-dollar however failed to take back the $1.3700 mark and spent the rest of the morning drifting lower. It traded below the overnight low to $1.3683 earlier in the session but further losses were contained by rumored demand off $1.3650, dealers said. It marginally extended the lows to $1.3680 in the late morning and was last at $1.3683 as trade flows continued to fade ahead of the European open. A close below $1.3621 would hint at a deeper correction that could target the $1.3295 level, although theimmediate focus would be on the $1.3485-1.3520 region. A close at fresh 2013 highs (above $1.3832) is needed to end current bearish views and see the Oct 2011 monthly high at $1.4241 become the focal point.
