The pair witnessed a subdued start to the new week today ahead of an eventful week ahead, with the main event being Thursday’s ECB policy meeting and the expected expansion of their asset purchase program. Early dealings saw euro-dollar marking a $1.1546 to $1.1575 range. Euro-dollar slipped off its morning high on pressure from euro-yen’s declines this morning and it then fell to $1.1553. The pair recovered a bit as traders covered short positions, driving the pair back up to the $1.1575 high. It turned down again soon after as risk appetite weakened and with Chinese stock markets opening over 5% lower. Euro-dollar returned to around $1.1555 and held off that through the rest of the morning. It last traded at $1.1555. For now, initial resistance is noted at $1.1617, marking the 38.2% Fibo retracement of the $1.1870 to $1.1461 fall, while support is noted at last week’s low at $1.1460, seen on Friday. Medium-term target remains at $1.1208, marking the 61.8% Fibo retracement from the all-time low of $0.8224 to the all time high of $1.6035.
