The pair started in Sydney this morning at $1.1078, toward the lower end of its $1.1062 to $1.1186 seen during yesterday’s session, traders noted large stops triggered on a break of the previous low at $1.1098, the move ignited on better US economic data. Another huge night for the euro ahead today, German factory orders the prelude to the main event, ECB policy statement and accompanying statement later in the European session. Ahead of all that, it’s been a session of narrow consolidation for the euro so far in the Asia-Pacific day, with euro-dollar trading up to an early high of $1.1085 before turning southward again. The subsequent retreat saw euro-dollar lose ground to $1.1073 but the pair then spent the next few hours shuffling within that $1.1073/85 range. The pair marginally extended the lows to $1.1070 in the late morning but momentum was clearly lacking in either direction, with euro-dollar last at $1.1058, lower than where it had started the session. Demand is noted ahead of the $1.1050 barrier. Support lies at $1.1062 (yesterday’s low) resistance is noted at $1.1137 marking the 23.6% fibo retracement of the $1.1379 to $1.1062 fall.
