The pair took a hit to a $1.3318 low Friday in the US after the dollar’s payrolls-driven rally. Euro-dollar however stopped short of a re-test of the post-ECB low of $1.3296 and has since managed a meager rebound albeit in fairly narrow Asian morning ranges today. Euro-dollar opened at $1.3358 this morning after Friday’s close just off $1.3370. It traded in a tight $1.3350/60 range early this morning before then extending the low to $1.3345. Euro-dollar managed a recovery as the dollar reversed and as risk sentiment improved and the pair then struck a mid-morning high of $1.3367, just about where it had ended on Friday. Euro-dollar was last at $1.3360, just off the morning high so far butneeds to close above the $1.3450 level where stops are noted in order to relieve the immediate bearish focus. A move below Friday’s low likely to run into strong demand from $1.3300 while below that, initial support is still seen at last Thursday’s $1.3295 low, and any break lower would then target a test of the 200-day moving average at $1.3217.
