The pair opened at $1.3436 this morning after a relatively subdued $1.3409 to $1.3456 range during the US session overnight. It marked an early peak of $1.3444 as it followed euro-yen’s early gains but backed off again to the $1.3430 morning low on the post-stock open drop in the cross. Some concerns of semi-official offers at $1.3450 were quickly erased on the subsequent rebound, with euro-dollar climbing easily through $1.3450 for a $1.3453 high before it stopped short of rumored stops above the overnight high. The pair held on near those highs through the rest of the morning, and was last at $1.3444. A break below $1.3400 likely to run into support off yesterday’s $1.3390 Asian low and then the 100-day moving average at $1.3356, although stronger support is seen at the Nov. 7 low of $1.3295, traded after the ECB’s surprise rate cut. Up top, a clear-cut move above the euro’s 55-day moving average, currently at $1.3486, would target a test of the psychological $1.3500 mark although traders mentioned solid euro offers ahead of that.
