The pair started in Asia this morning at $1.3877 and spent the early part of the morning broadly supported from the initial low of $1.3867. Mild, early risk-on sentiment held euro-dollar aloft, with the pair pushing through to $1.3888 as Asian stock markets began their sessions. The pair was lifted further as euro-yen traded its high for the morning, with euro-dollar touching $1.3892 before the gains fizzled out. Some dealers pinned the blame on sell interest spotted toward $1.3900, while euro-yen’s move off the initial highalso contributed to euro-dollar’s pullback. Euro-dollar eased to a $1.3881 and was still broadly support heading toward the start of the European session, last trading at $1.3888 compared with Friday’s close of $1.3875 in the US. The pair’s relatively bearish close last week following the move to a fresh 2014 high of $1.3915 and the highest level since Oct 31 2011 will be of some concern to the bulls with bears looking for a close back below the $1.3850 hourly support to hint at a deeper correction that would initially target the $1.3694-1.3732 region with the 21-day moving average currently noted at $1.3735.
