The pair fell to another fresh low for 2014 so far in early dealings this morning after last night’s $1.2852 low failed to hold the pair up. Euro-dollar was under pressure after it opened at $1.2865 this morning and it promptly fell to $1.2835 in early trade, its lowest since July 2013, mainly as a result of the continued dollar gains. Euro-dollar’s initial rebound attempts were fruitless, and the pair slid back to to $1.2835 before finding fresh legs after Asian markets got full underway. A stronger euro-yen tone also helped euro-dollar’s recovery, with the latter hitting $1.2865 toward the late morning. Euro-dollar managed to extend the recovery through $1.2870 for an early afternoon high of $1.2874 and it last traded at $1.2867. The sell-off that started last night reconfirms bearish pressure on the pair and the fresh 2014 and 14 month lows sees immediate focus shift to the $1.2745-55 region where 2013 and July 2013 monthly lows are noted. Initial resistance has developed on the hourlies in the $1.2866-1.2909 region with stops noted above $1.2910 and more substantially above $1.3000 today.
