The pair opened in Asia at $1.3812 this morning after spending the US session trading between $1.3806 and $1.3857. Early dealings confined euro-dollar to an exceptionally narrow $1.3808 to $1.3815 range this morning, as the pair struggled to take back the gains seen overnight. Rumored strong selling from around $1.3830 capped the pair’s moves higher, and euro-dollar was then dragged lower by a heavy euro-yen tone this morning. Euro-dollar slipped through $1.3808, and then through minor support seen at $1.3806/05, the region of last night’s US low and the 50-day moving average, and traded a $1.3804 low as euro-yen traded at its low for the session a few minutes before the BOJ’s policy decision at the end of its one-day meeting. Euro-dollar saw small blip to$1.3808 after the BOJ decision and was last at $1.3806. A close below next support at $1.3779 would confirm a break of the 21-day moving average at $1.3809, ending bullish aspirations and seeing the focus shift lower to the $1.3673-1.3727 region where the 100-day and 21-day lower Bollinger band are located.
