The pair started at $1.2895 this morning in Asia, after last night’s $1.2882 to $1.2957 range. Initial trading action was muted and confined euro-dollar to a $1.2.889 to $1.2900 range. The top of that range held fast on a second move higher as the dollar retreated and euro-dollar then began to drift lower amid a lack of strong trading interest. The US dollar’s reversal off the morning lows put more pressure on the euro and it slipped to $1.2877. Some talk of demand in the $1.2850/40 region slowed the pair’s move down but it eventually dipped further for a low of $1.2867. The pair remained under pressure since then and was last at $1.2876. Overall a close above $1.3221 is needed to confirm a break of the 21-DMA and hint at a bigger bounce. Immediate focus remains on the$1.2745 2013 low despite oversold daily studies. Immediate sellers are noted at $1.2925/30, with more noted at $1.2940/50 and resistance then noted at last Friday’s $1.2988 US session high.
