The pair started this morning at $1.3574 after a $1.3530 to $1.3580 range in the US last night. Euro-dollar edged higher in early dealings after an initial $1.3572/75 pre-Asian range and broke through the overnight high. It got up to $1.3587 after regional stock markets got underway but topped out there. It slipped back to $1.3573 around mid-morning and then ran into fresh selling pressure after the aussie weakened in the wake of the RBA minutes. Euro-dollar slid to a $1.3558 low but ran into minor demand, which came in at $1.3550 and provided support for the pair. Euro-dollar retraced a bit to lasttrade at $1.3565. Looking ahead, immediate focus has shifted back to the key $1.3583 resistance level that represents the June 9 low following the bounce from initial supportovernight. A close above the 21-day moving average ($1.3610) would add further support to the bullish case with the target then the $1.3677 June 6 high with a close above needed to confirm a break of the 200-DMA. Attention ahead will be on the German and EZ ZEW Economic Sentiment numbers out in Europe later Tuesday.
