Another quiet session for euro-dollar today in the Asian trading hours following last Friday’s drop to 10-week lows around $1.3479 after weak eurozone CPI data. Euro-dollar opened near that low at $1.3484 and was subsequently confined to a narrow $1.3480 to $1.3496 range through the Asian trading hours. The market mostly focused activities on consolidating recent moves with eyes also on this week’s ECB meeting. Risk appetite showed little signs of major deterioration and with Chinese and Hong Kong markets closed, flows were largely consequential and limited. The pair withdrew from the initial high amid talk of sellers near $1.3500, with euro-dollar last traded just offthat at $1.3494. Its drop last Friday sees the focus shift to a retest of the $1.3376-90 region with the 200-day moving average noted at $1.3376. A close below the 200-DMA was briefly seen back in early Sept 2013. Initial resistance is noted at $1.3573, Friday’s high, with stops noted above and a close above this level needed to relieve the bearish pressure a little. Ahead today, eurozone PMI data are due and a close above the 21-day at $1.3610 is needed to shift focus back to the $1.3720-40 region
