It was a quiet start for the euro this morning as it opened at $1.3785, toward the low end of the overnight $1.3784 to $1.3810 range. It headed up marginally in early trade to hit $1.3794 but was dragged lower by the early falls in euro-yen. Euro-dollar dropped to a $1.3770 session low soon after Japanese stock markets got under way. Demand from below the initial low supported the pair, as did rumors of bids by Asian sovereign names and as the aussie weakened, pulling euro-aussie up. Euro-dollar received a further boost as regional stock markets and risk assets rallied on news of China’s liquidityinjection, and euro-dollar ran up to $1.3790 as euro-yen also went back to its high. By the early afternoon however, euro-dollar was consolidating the earlier swings, and was last at $1.3777, just off the morning low. Further down, a break below $1.3770 is expected to run into strong bids but a close below the $1.3764 Oct 24 low is expected to trigger stops and see the pair target the $1.3649-1.3706 support region.
