The pair started the week at $1.3635 in Asia Monday, retracing lower from NY’s high of $1.3650 as the pair failed to close above the 200-dma at $1.3644. The euro spiked briefly to a high of $1.3644 during early Sydney hours before reversing lower to hit session low of $1.3321, on back of stronger dollar tone as USD index & dollar-yen rallied in early Asian session dragging euro-yen higher. Weak stops were triggered on the way up but met strong offers at $1.3642/43 levels before the 200-dma and the rate failed to break above as dollar bulls continued to protect the key resistance. Thereafter, the spot stayed within a confined range of $1.3621/33 during Asia morning after the dipand sits at $1.3629 last. Stops are reported above $1.3450 while strong demand noted at $1.3485/80. With daily studies correcting from O/S, pressure is expected to remain on the $1.3643-69 region until a break of last week’s low is seen. Bears need a break below and a bearish close to confirm the focus on the $1.3477 2014 low. However, some traders took the opportunity to short near the 200-dma ahead of Thursday’s ECB monetary policy announcement and Friday’s US jobs data.
