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Forex pairs in this Article » EUR/USD (Edinburgh) - Despite the prevailing risk-off tone in the broader markets, the EUR/USD posted a fresh 3-week high near 1.3740 on Friday.

EUR/USD looks to US yields

A sudden drop of the US-10y yields to the vicinity of 2.70% would be behind the current spike in the spot, now closer to the key 1.3750 barrier. Positive week for the EUR so far, outperforming in the second half of the week following PMI prints above expectations and supporting the ongoing – albeit still fragile – recovery in the 18-country region. “While a better economic outlook in the Eurozone is welcome, we still view the recovery as nascent and see risk that ECB President Draghi will repeat is dovish sentiments for some months yet”, observed Jane Foley, Senior Currency Strategist at Rabobank.

EUR/USD levels to consider

At the moment the pair is advancing 0.21% at 1.3726 with the immediate resistance at 1.3776 (2014 high Jan.2) followed by 1.3819 (high Dec.30). On the flip side, a breakdown of 1.3530 (low Jan.23) would target 1.3517
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