The pair traded a low of $1.3404 last night during the US hours and started this morning at $1.3409 but has since held off from any fresh attempt to take out the $1.3400 barrier. Euro-dollar spent most of the morning supported off $1.3408 amid rumored strong demand, mostly defending that $1.3400 barrier, dealers said. The pair got up to a $1.3415 high around mid-morning and then ran into initial resistance noted at $1.3420, while offers are seen at $1.3450, with stops expected above that, and at $1.3500 and $1.3520 today. The pair was last at $1.3409 with stops noted below $1.3390 today but market watchers believe we may have to wait until early London traders join in before any break lower. Traders are also keenly awaiting not only the FOMC statement but also the German Prelim CPI number due out later Wednesday. The US session also sees Q2 GDP and July ADP Employment.
