The pair started in Asia at $1.3776 toward the high side of the $1.3742 to $1.3793 range traded in the US session overnight. Euro-dollar got an early lift from the risk-on environment, which also carried euro-yen higher, rebounding from an early $1.3774 low to $1.3788 soon after regional stock markets kicked off. The pair lost some ground around midmorning but rallied again after that, this time to revisit a $1.3792 high, matching the highs traded in the US and during the Asian session yesterday. Although it eased a few notches after that, the market continues to eye a move above $1.3800, sooner rather than later. Currently however, there is solid selling ahead of thatlevel, with talk persisting of an Asian account protecting a barrier there. If that level does break, that would be the first time euro-dollar moves above $1.3800 since October 2011, with the next level of interest then seen at $1.3864. There are said to be solid offers at $1.3830-35 (61.8% Fib retracement of the $1.4940 May 2011 to $1.2042 July 2012 decline) and then stops and additional offers at $1.3850. Euro-dollar last at $1.3788.
