A quiet start to 2014 for the euro this morning, as it opened at $1.3763 and, after a brief retreat to $1.3741, rebounded to $1.3775 even before any of the main Asian markets were fully open. A heavy euro-yen tone then sapped the euro of the early strength, and pushed euro-dollar back down with sellers at $1.3760 then coming as well to further weigh down euro-dollar to $1.3750. The pair staged a short recovery again to the $1.3775 earlier high and then ran out of steam again. Trades flows again dissipated after that, and euro-dollar drifted lower again to $1.3750 region in the early afternoon in Asia. Euro-dollar was last at $1.3747. Immediate support below is seen at the 21-daymoving average at $1.3727 and if that holds, a re-test of the $1.3820-25 region then seems likely.
