The pair started the session today at $1.1770, after overnight trading was confined to a $1.1754 to $1.1859 range. It traded mostly between $1.1770 and $1.1780 in the early hours before rising to a high of $1.1782 a few minutes after Japanese stocks got under way. It turned lower after that, eventually sliding to a $1.1764 low for the morning so far around mid-morning. That came as euro-yen also retreated in risk-off trades although the euro has since recovered some ground. It last traded at $1.1778. Orders linked to a $1.1750 barrier, due to expire Jan. 16, is providing support for the euro with any break below expected to bring to an end to the euro’s short-term consolidation and target a move to $1.1660 (December 2005 lows). Stops are noted below $1.1750, $1.1700 and $1.1630 and topside above $1.1800 and $1.1900. All eyes are now on the ECJ ruling on the constitutionality of the ECB’s Outright Monetary Transitions Policy (OMT).
