The pair traded in a $1.2419 to $1.2496 range during the US session last night before it closed at $1.2421. Early market action this morning in the Asia-Pacific saw euro-dollar creep higher, reaching $1.2432 minutes after Japanese stocks opened, thanks to a firmer euro-yen tone as well. Euro-dollar continued to track the cross after that as it gave back the early gains, and euro-dollar traded back down to $1.2420. The euro rebounded after that, with euro-dollar then surging through the early highs and reaching $1.2441 around mid-morning before offers at $1.2450 capped the move. Euro-dollar then turned lower in the afternoon as the dollar made a fresh run higher against the Japanese yen, triggering a broader US dollar rally. The pair was last at$1.2422. With sellers at $1.2500 having capped the pair during the session today, euro-dollar is seen needing to clear the US high of $1.2496 to encourage a stronger recovery. Stops are noted above $1.2450 and $1.2540 today and on the downside below the $1.2350 level. While $1.2685 caps bears favour fresh 2014 lows with overall focus remaining on the $1.2042 2012 low.
