The pair started this morning at $1.2376 after Friday’s $1.2375 to $1.2438 range during the US hours. The pair pulled back in early pre-Asian dealings amid some worries about the how the market might react to Fridays’ surprise China rate cut. Euro-dollar traded below Friday’s $1.2374 low to hit $1.2360, just shy of the 2014 low at $1.2358, traded on Nov. 7, but recovered soon after. Euro-dollar stalled for a while at $1.2375 but broke to $1.2385 around mid-morning in very muted dealings. It extended the highs to $1.2393 in the late morning and held near there in the early afternoon to last trade at $1.2391. Friday’s sharp selloff now sees initial resistance noted in the $1.2405-40 region. Topside stops are seen above $1.2450, $1.2500 and $1.2600 to start the new week. Downside sell stops are noted below $1.2350. A break below the 2014 low would bring the pair down to its lowest since Aug 21, 2012, when it traded a low of $1.2342.
