A quiet start for the pair after it opened at $1.3805 and following a $1.3789 to $1.3825 range in the US last night. The pair got an early lift to around $1.3809 as initial risk-on sentiment provided support for euro pairs like euro-yen. It then eased toward $1.3800 and then uncovered healthy buy orders from below, which sparked a mild recovery. Further gains materialized as the aussie ran into trouble, first after the CPI data and then the China HSBC flash PMI. Euro-dollar broke sharply higher as euro-aussie rallied, the former hitting $1.3817 and then a $1.3819 high soon after. There have been only modest pullbacks off that high since, with euro-dollar last at $1.3818 ahead of theEuropean open. A close above $1.3834 would be bullish for the pair while a close above $1.3863 would then target the $1.3905-67 region. On the downside, stops remain below $1.3779.
