The pair opened at $1.3635 this morning after a $1.3612 to $1.3642 range last night in the US. Early dealings were muted, with euro-dollar shuffling between $1.3634 and $1.3637 initially. Euro-dollar then turned sharply lower after Japanese stock markets opened, taking its cue from a similar move in euro-yen down to its session low. Euro-dollar slid to $1.3627 but rebounded after that as the US dollar hit month-end selling interest. Euro-dollar’s recovery took it back to $1.3637 and it then marginally extended the morning high to $1.3638. Euro-dollar was last at $1.3630. The pair continues tooscillate around the 200-day moving average, at $1.3642 today, although the lack of follow-through following the fresh 2 month lows overnight combined with very oversold daily studies is providing a glimmer of hope for a bounce. While the $1.3669 level caps, the immediate focus is targeting the $1.3562 low from Feb 12. Stops are noted below $1.3600 and above $1.3675.
