EUR/USD Analysis

The pair opened in Asia at $1.0637 toward the upper end of the $1.0494 to $1.0684 seen yesterday, profit-taking the overriding theme after the euro rebounded sharply from a fresh 12-year low. The euro spent the morning in a generally more subdued fashion this morning, slipping from around $1.0630 as euro-yen traded lower. Euro-dollar dropped to $1.0614 and followed up with a brief recovery to $1.0623, as rumored demand from around $1.0610/00 held the pair up. Broader US dollar gains continued to weigh on euro-dollar and dragged it back down to a late morning low of $1.0606. A break below $1.0600 is likely to open a move toward rumored buyers at $1.0585/80, support is seen at $1.0589, with stops expected on a move through $1.0550. US PPI is the next risk event (1230 GMT), in the meantime, choppy consolidation is the likely scenario. Decent-sized sell orders are cited around $1.0700. EUR/USD last trades at $1.0607.