It was also a quiet Monday for the pair as traders sat on their hands during the US hours, with bond and FX markets there shut for Veterans Day. It started in Asia near $1.3407 and then drifted lower in early dealings, to trade just below $1.3400. Losses continued after aussie-dollar weakened on the NAB business survey, and euro-dollar also then traded fresh lows for the morning at $1.3390 as dollar gains also began to solidify. The pair spent the rest of the morning hovering near the morning lows although market action lost some of its momentum, as players waited for inflation data out of Germany and Italy to see if the downward trend is maintained. Euro-dollar was last at $1.3393. Further down, dealers note there’s not a lot of interest below $1.3400, with nearest bids only seen near $1.3325/20 and key support then seen further down, around last Thursday’s $1.3295 low, which also coincides with the pair’s 50% retracement of $1.2755 to $1.3833 move. On top, stops are seen above $1.3455-60, with a close above this region needed to shift the focus from further tests of the $1.3216-95 region and back to the $1.3548 Nov 6 high.
