The pair opened at $1.3792 this morning in the Asia-Pacific after trading a high of $1.3811 last Friday. The early risk-on theme and broader US dollar declines nudged euro-dollar up to a $1.3807 high but it failed to follow-through amid rumored offers from various Asian accounts. Euro-dollar declined to $1.3788 and then recovered again as yen crosses also rose following a positive open in Japanese stocks. The euro however retreated again after the HSBCX flash PMI reading, this time trading a $1.3786 low before recovering again amid talk of euro-aussie demand driven by the aussie’s weakness after the HSBC release. Euro-dollar was last at $1.3801 and appeared poised to extend the lead back toward the Friday highs although offers are believed to still be in place around $1.3810. A close above Friday’s $1.3811 high seen as needed to ease bearish pressure while bulls need to see a close above $1.3879 to shift focusback to the $1.3948-66 region. Support is now seen at the $1.3760/50 area, with bids noted from there down to $1.3730.
