The ECB decision to keep policy unchanged and the bullish tone from ECB President Draghi gave the euro a boost to a $1.3873 last night, its highest since Dec. 27, before it slipped back to open at $1.3861 this morning in Asia. Dealers initially noted very little offers ahead of the overnight highs to keep the pair from a re-test of the Dec 2013 high of $1.3893, although possible option-related selling interest had been seen toward $1.3900. But profit-taking interest and the general reluctance to take fresh positions before tonight’s key US data sapped the euro of much of its overnight strength and it managed only a marginal high of $1.3868 after Japanese stocks opened before retreating again. Euro-dollar eased below the initial $1.3859 low and then continued on the $1.3856 before it stabilized near those lows. The pair was last at $1.3858. Fornow, bears will be looking for a close below the $1.3825 level to ease bullish pressure a little and a close below the $1.3790 level to hint at a pullback to the 21-DMA. A close below the $1.3694 low from Feb 28 is needed to end bullish aspirations and hint at a deeper correction that would see bears targeting the $1.3477 2014 low.
