The pair opened at $1.3385 this morning, following a $1.3381 to $1.3396 range during the US hours overnight. Euro-dollar initially stayed in a tight $1.3381/86 range in the early hours but retreated to $1.3375 later in the morning. Euro-dollar extended the morning losses to a low of $1.3368 and has since staged a marginal recovery off the low. The pair was last at $1.3373. Initial support is now noted in the $1.3366-80 region with a close below $1.3366 to provide some breathing room. The $1.3445 resistance level remains key, while above $1.3486 would shift the overall focus back to the $1.3650-00 region where 100-day and 200-day moving averages ($1.3651/58) are also located. Stops are noted above $1.3450, $1.3490 and $1.3500. Downside stops are see below $1.3660, $1.3330 and $1.3290. Traders will look to today’s eurozone and German ZEW Economic Sentiment data for further leads.
