The pair started this morning at $1.3871, after being drilled to a $1.3812 low on Friday after the US non-farm payrolls data. It got an early lift this morning on reports that Portugal had said it won’t need further help from its bailout lenders. Euro-dollar reached a high of $1.3887 but then turned lower after it failed to make further gains beyond that. Some traders said there were concerns a move through $1.3900 would draw the ire of the ECB as it prepares to announce its policy decision this Thursday. Euro-dollar then dropped back to $1.3871 initially, before extending the losses to $1.3865 low before it saw a modest bounce. The pair was last quoted at $1.3874, just about where it hadstarted the session. The pair has repeatedly dipped below the 21-day moving average, at $1.3832 today, but has not closed below, while a close below the $1.3814 support would confirm a break of the 21-day and see the focus return to last week’s $1.3771 low. Stops are noted above $1.3910 and $1.3970 and on the downside below $1.3770.
