The pair started in Asia this morning at $1.3709 after a $1.3648 to $1.3732 range in the US last night. It traded up to $1.3717 but lost ground as risk appetite took a hit from weak regional stocks. Euro-dollar dropped to a low of $1.3707 after Japanese stock markets opened but managed to hold off further losses as euro crosses found demand interest off the lows. Euro-dollar edged back up to $1.3717 soon after and fresh euro interest then took hold carrying it up to a high of $1.3721. It then spent the rest of the morning in Asia chopping between that high and $1,3715 as market interest slowly faded ahead of the European open and the weekend. Dealers noted the presence ofsellers having left orders at $1.3740 and at $1.3760 while bids are noted down below this morning’s low at $1.3700. Further down, some minor support is seen around $1.3666 from a swing target and the 1% volatility band but the main focus will be on the prospects of a further drop towards $1.3625-$1.3600.
