The pair started in Asia this morning at $1.3439 after a $1.3415 to $1.3547 overnight range in the US. Fed QE tapering views and reports that the ECB might consider lowering the deposit rate to -0.1% fuelled last night’s euro weakness and kept the euro trading with a heavy tone today. The pair fell to a $1.3420 low soon after Japanese stocks opened but made no attempt to take out the $1.3415 overnight low. Euro-dollar remained under pressure but spent the rest of the morning shuffling between the $1.3420 low and $1.3430. It was last at $1.3425. The pair’s correction lower after failing to hold above the 21-day moving average at $1.3544 has seen the focus shift down to a deeper pullback that would initially target the $1.3295 Nov 7 low, and then the 200-day moving average below at $1.3218.
