It’s been a relatively muted start to the week for the euro this morning as it opened at $1.3592 after Friday’s $1.3565 to $1.3598 US trading range. Light, early dealing kept euro-dollar confined between a low of $1.3584 and $1.3599 amid a lack of strong market interest. The pair however broke out of the initial range after the HSBC China flash PMI, as it crept up through $1.3600. Euro-dollar then hit a $1.3610 high after that and was last at $1.3606. The $1.3669-77 region remains key resistance for the euro this week with the 200-day moving average noted at $1.3670. A close above $1.3677 wouldconfirm a break of the 200-day and see the immediate focus shift from retests of the $1.3500-15 region to retests of the $1.3730-75 region. There are plenty of economic event risks to start the new week for the euro with all eyes focused on the French, German and EZ Manufacturing and Services PMI’s due out in European trading this afternoon.
