The pair started this morning at $1.2632 after a $1.2605 to $1.2671 range during the US hours on Friday. Euro-dollar dipped to an early low of $1.2620 as the US banks who had been selling dollar-yen also offloaded on euro-yen. The losses were however contained as Asian markets got underway and as the FX market turned against the dollar in general, giving the euro a fresh leg up. Euro-dollar got up to $1.2649 initially and then extended the gains to $1.2680/90 a few minutes before the release of Chinese trade data for September. Euro-dollar made further gains after the data were released, climbing to a high of $1.2698 before running out of steam. Euro-dollar was last at $1.2686. Looking ahead, the $1.2816 resistance level remains key this week with bulls needing a close above to confirm a break of the 21-DMA and see focus shift to the$1.2976-93 region where the Bollinger band top is located.
