The pair started in Asia at $1.3742 after a $1.3721 to $1.3748 range in the US last night and made small gains in early trade. It ran into mild weakness as euro-yen retreated following a soft opening in Japanese stocks, with euro-dollar slipping to a $1.3741 low soon after. The pair recovered some ground after that as the dollar weakened broadly, this time re-visiting last night’s $1.3748 high before running aground again. According to dealers, the pair ran into rumored offers from $1.3750, which have been in place since last night. Euro-dollar retreated again after toward the low end of the early range but hasnot made any concerted attempt to break out of its intraday range. Euro-dollar was last at $1.3743. Last week’s $1.3821 high remains key resistance this week with bulls needing a close above to confirm a break of the 21-day moving average ($1.3809) and shift overall focus back to the $1.3879 level. Bears now need to see a close below the 100-day at $1.3693 to reconfirm bearish pressure and see immediate focus shift to the $1.3643 Feb 27 low.
