The pair opened with a slight dip to $1.3112 compared with the NY close of $1.3125 before the same account that had sold dollar-yen early this morning bought euro-dollar up. The subsequent rally took the pair back up to $1.3128 before supply then entered the market, believed to be from $1.3170, and then extending from $1.3190 up toward $1.3250, according to market sources. That sell interest was sufficient to cap the pair’s move higher and euro-dollar then slipped to around $1.3107/14 in the late morning. The losses resumed again in the afternoon as the dollar continued to climb, with euro-dollar then sliding to a $1.3094 low. Ahead of the European open, immediate euro-dollar support is still seen at the cluster of moving averages around the $1.3090/70 mark (200-day and 40-day), with breaks below likely to run into strong demand around $1.3060/50. Strong resistance appears to have formed around the $1.3170/80 mark, which held again last night in the US session, with a break above likely to see stops getting hit
