The pair started at $1.2849 early today after a $1.2816 to $1.2856 range during the US session overnight. Initial gains were constrained at $1.2852 but a stronger rebound was seen after the euro traded $1.3847 a move reflected in broader euro pairs elsewhere. Euro-dollar rose to a high of $1.2864 as risk sentiment improved after the release of HSBC’s China flash PMI but with the aussie also rising, euro started to feel the pinch from a softening euro-aussie cross. Euro-dollar retreated to $1.2850 as the cross quickly deflated from an early high of A$1.4492 to a low of A$1.4447. The cross briefly rebounded to A$1.4482 before turning down again to A$1.4446 in the early afternoon, weighing euro-dollar down along with it. Euro-dollar was last at $1.2850, staying offlast night’s new 2014 and new 14-month lows traded in New York. Ahead, the $1.2995-1.3005 region remains key resistance this week with a close above the 21-day moving average at $1.2992 to confirm an easing of bearish pressure and a shift higher in overall focus to the $1.3295-1.3333 region. Traders will be firmly focused on the French, German & EZ Flash PMIs due out in Europe this evening.
