After yesterday’s shock SNB announcement, EUR/USD fell to a $1.1568 low during the US hours before recovering to start the Asian day at $1.1633. It has ranged $1.1600 to $1.1640 so far today with reduced volatility seen compared with last night’s market action although the heavy bias was also said to be intact. Early weakness in euro-yen dragged euro-dollar down to the Asian low but there hasn’t been exceptionally large follow-through sales. Euro-dollar demand from around the overnight low picked the pair up after that as did euro-yen’s recovery off the low. The recovery was gradual and euro-dollar only traded its peak toward the end of the morning. It last traded at $1.1639. In the aftermath of the SNB, the main focus today will be on the release of both German (0700 GMT) and EU CPI (1000 GMT). Initial resistance is noted at $1.1673, the 38.2% fibo of euro-dollar’s $1.1845 to $1.1567 fall. Support is seen at last night’s low at $1.1567. With the 5-, 10- and 20-day MA’s all pointing down, bears remain in control and looking for an eventual test of $1.1375 (Nov 2003 lows).
