After a torrid overnight session which saw the euro fall to a $1.3296 low and then recovering back to $1.3450 in the wake of the ECB’s surprise rate cut, euro-dollar started the Asian session with a cautious tone, around $1.3419. The pair ran into early selling as follow-through interest emerged out of Asian centers, and euro-dollar slipped to $1.3406. Euro-dollar saw a mild recovery to $1.3417, taking its cue from euro-yen rebound off the low, although euro-dollar’s move was somewhat less pronounced. Euro-dollar then spent the rest of the morning easing again toward the $1.3406 low, and was last traded at $1.3412 before tonight’s US jobs report. That leaves it almost flat from where it had ended in the US last night, at $1.3419. For now, $1.3350 may provide interim support ahead of last night’s $1.3295 low, where there’s also been some talk of demand from Asian sovereign accounts. Stops are expected on any recovery back through $1.3450 but the pair is seen needing a close above the Nov 6 high at $1.3548 to relieve the current bearish focus that is now targeting tests of the $1.3218-25 support region with the 200-day moving average then noted below at $1.3218.
