The pair closed in NY Wednesday at $1.2780 after rate was pressed through barrier support at $1.2800 during the NY morning, with rate extending its 2014 lows to $1.2774. Trader reports cited reaction to stronger US home sales data, along with earlier release of a weaker than forecast Germany Ifo, for providing the downside pressure, though most saw the main attraction was the barrier at $1.2800 which was targeted and taken out. Recovery efforts were held below $1.2800 and were seen keeping a heavy tone on the euro. Euro-dollar consolidated this move in early Asia, trade was contained within atight $1.2775/80 range before it edged to a high of $1.2783 before turning lower as traders reacted to reported ECB Draghi comments, made in a Lithuanian paper, that the Bank stands ready to use non-standard tools if needed. Rate was pressed to extended lows of $1.2764 ($1.2763 1.618% swing proj. $1.2816-1.2901)before it met willing buyers though recovery efforts remained very shallow and was seen keeping focus on the downside. A break of $1.2763 to expose stronger support area between $1.2755/46 (July9 2013 low/2013 low). Sell interest remains into $1.2800, with Asian macro offers noted around $1.2830
