The pair traded an early low of $1.2794 this morning after it started at $1.2809, as the dollar jumped following the RBNZ’s initial statement on FX. The US dollar reversed direction after the statement was retracted, giving euro a chance to rebound. That rebound then picked up demand through $1.2800, which then helped propel euro-dollar further up to $1.2815. The pair traded that high twice but, euro sellers then appeared from around $1.2840/50, which eventually overwhelmed the pre-weekend market. Euro-dollar slipped through $1.2800 again and eventually went back to the $1.2794 session low in the early afternoon. It was last at $1.2801. Looking ahead, while $1.2700 supports the focus is likely to remain on the $1.2995 resistance with the Bollinger band top at $1.2915 seen as the key. Stops are noted below $1.2695 and above $1.2850 and $1.2900.
