It’s been a fairly languid session for the euro, with the currency takings its cue from the whims of the broader US dollar trend. Euro-dollar started this morning at $1.3524after it had fallen to a low of $1.3485 in the wake of the FOMC minutes last night. Euro-dollar spent the early hours of today between $1.3520 and the intraday high $1.3528 before heading south as the dollar gained. Sellers from $1.3535, just above the US high, and from $1.3560, above the European session high, weighed down euro-dollar. The pair dropped to an early low of $1.3500, where bids there and just below managed to contain the losses. A mild rebound to $1.3511 followed but the strong dollar tone eventually overwhelmed, with euro-dollar then sliding to an early afternoon low of $1.3490. From here, a break below last night’s $1.3485 low is expected to trigger a sharper pullback, while further down, key support is seen at $1.3455/50, and a break there to likely to see hefty stops going off.
