The pair started this morning at $1.3364 after gains last night stalled at $1.3394, just shy of rumored heavy selling at heavy offers at $1.3400 (options expiry). The euro had a muted session in the Asia-Pacific today although risk-off trades weighed on euro-dollar through the morning. The pair failed to make any headway above the opening level and it deflated to $1.3350. Losses continued as euro-yen also weakened after Pres. Obama’s Iraq announcement, and the pair sank to a $1.3343 low. Some relief seen after the China trade data and as euro-yen also retraced higher with euro-dollar then taking back most of the ground lost earlier, and was last at $1.3361. The $1.3446 resistance level remains key with a close above to ease bearish pressure and above $1.3530 needed to end bearish hopes and target the $1.3650-00 region. Stops are noted above $1.3610 and more importantly above $1.3450 and on the downside below $1.3330.
