The pair spent another lackluster session keeping to a fairly narrow range in the Asia-Pacific timezone following last night’s US holiday. Euro-dollar traded $1.3556 to $1.3568 in the US hours, and then opened at $1.3552 this morning. A bout of light, early selling pressure pushed euro-dollar down to $1.3540 and then further to a session low of $1.3537 before it recovered, courtesy of reported bids down at $1.3525. The rebound was tame however with euro-dollar only reaching $1.3560 before it pulled back again tolast trade at $1.3546. Further demand is seen below the initial morning low at $1.3490/87 while offers are expected from $1.3568/80 and at $1.3650/55, dealerssay. On the charts, below the falling 21-day lower Bollinger band at $1.3518, the pair is initially expected to target the $1.3487 level and then the $1.3295-1.3390 region below with the 200-day moving average subsequently noted at $1.3354. Ahead, today’s German and eurozone ZEW Economic Sentiment data are key event risks for the euro and could inject some volatility.
