The pair started in Asia at $1.3851 after a $1.3840 to $1.3874 range in the US last night. It traded at fresh 2 week highs during Monday’s session, finally managing to take out the $1.3863 resistance level before closing back below at $1.3850 in New York. Early Asian action saw euro-dollar getting a lift from gains in euro-aussie cross, which saw euro-dollar move up through $1.3863 again before running aground at $1.3866. The pair then shed a few points to trade back toward the opening levels amid a lack of any decent follow-through interest but found support off $1.3850. The pair was last at$1.3863 though the lack of follow-through on top has been of some concern for bulls targeting the $1.3905-67 region. Initial support developed on the hourly time frame at $1.3840 but the $1.3779 support remains key overall. A close below $1.3779 would end bullish aspirations and see the immediate focus shift lower to the $1.3673-1.3726 region where the 100-day moving average and the lower 21-day Bollinger band are located. Stops are also noted below $1.3805 and $1.3775.
