Worries about tensions in Ukraine contributed to pressure on the euro last night, with the pair declining to $1.3662 in the US session before finding a base just above the 55-day moving average of $1.3660, which is also 38.2% of $1.3477-$1.3773. Euro-dollar got a lift from comments by the Fed’s Rosengren which extended into the close and the pair started the Asia-Pacific session at $1.3686. Euro-dollar then spent another day on the sidelines with the aussie today taking most of spotlight while recent Chinese yuan volatility showed some stability and risk appetite improved. Early stock market weaknesss drove euro-dollar down to a $1.3676 low but it recovered after that. Euro-dollar got up to a $1.3697 high as risk positions were put back on and demand from$1.3650 added lift. The pair however failed to make any meaningful test of $1.3700 amid rumors of plentiful sellers above, and was last at $1.3688. Looking ahead, the market is focused on US (durable goods and weekly jobless claims) and eurozone (flash German HICP) data, as well as Fed Chair Janet Yellen’s testimony before the Senate Banking Committee. Immediate support is seen at $1.3640 while sellers around $1.3700/05 may still curb upside potential
