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Forex pairs in this Article » EUR/USD (Edinburgh) - The bid tone remains intact around the shared currency on Monday, lifting the EUR/USD to post fresh 6-week highs in the area of 1.3740.

EUR/USD boosted by risk

The pair is advancing for the sixth consecutive week so far, fully retracing the knee-jerk post-ECB November rate cut and currently hovering over 1.3740/45. Positive trade data from the Chinese economy released over the weekend allowed a continuation of the risk-on trade, adding to the recent EUR rally. Today’s Fedspeak failed to give markets a clearer direction regarding the Fed’s QE tapering, also collaborating with the pair’s upside momentum. According to Camilla Sutton, Chief Strategist at Scotiabank, the short-term technicals remain bullish and “warn of further upside and there are few warning signals on the charts. Support lies at Friday’s open of 1.3667; while resistance comes in at the October 31st open of 1.3736, followed by the October high of 1.3832”.

EUR/USD key levels

At the moment the pair is up 0.26% at 1.3738 with the next resistance at 1.3748 (high Dec.9) followed by 1.3787 (high Oct.30) and then 1.3818 (high Oct.28). On the downside, a break below 1.3695 (low Dec.9) would open the door to 1.3628 (daily cloud top) and then 1.3620 (low Dec.6).
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