The pair traded a $1.3355 to $1.3416 range during the US hours last night and then opens at $1.3364 this morning. The euro took its lead from early gains in euro-yen to edge up to a session high of $1.3367 before turning lower again. It slipped through $1.3360 and sank to a $1.3356 low after that. Market chatter of option expiries at $1.3350/40 and strong demand at $1.3335/30, down to $1.3300 helped to cushion euro-dollar’s losses but recoveries off that low have been generally tepid. Euro-dollar was last at $1.3363. The pair traded a low of $1.3342 during the European trading hours yesterday. Overall, a close above $1.3485 is seen ending bearish hopes and see the focus shift to the $1.3645-1.3700 region where 100- and 200-day moving averages are located. Stops remain above $1.3450 and $1.3500 and on the downside below $1.3330 and $1.3290.
