The pair traded a $1.3885 to $1.3901 range during the US session last Friday but opened in Asia today sharply lower at $1.3843 thanks to comments from ECB President Draghi at the weekend. Draghi commented on the euro’s strength and markets feared he was signaling an intent to ease policy ahead. Euro-dollar’s early dealings saw the pair slip to $1.3833 this morning although the gains turned out to be shortlived. Euro-dollar recovered to a $1.861 high soon after Asian markets were fully up and running and then stabilized in a narrow trading range as the initial excitement died down. The pair stayed in a $1.3843 to $1.3854 through the rest of the morning and was last at $1.3852. It has so far found support ahead of the $1.3828 level with initial resistancenoted at the $1.3863 low traded in early NY on Friday. The $1.3806-28 region is key support for the euro going forward, with a close below likely to ease bullish pressure that developed last week. Stops are noted below $1.3820 and below $1.3800 with a close below $1.3800 seeing focus shift back to the $1.3673 level.
