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Forex pairs in this Article » EUR/USD (Edinburgh) - The buying interest around the single currency seems to have deflated on Friday, dragging the EUR/USD back to the 1.3690/85 region.

EUR/USD surrendering gains

The pair is now off multi-week highs, back below the 1.3700 handle and following the more ample trend favouring safer assets amidst a generalized sell-off in the EM space. “We continue to expect the euro to remain relatively stable against the US dollar in the week ahead. The US dollar is gradually deriving support from the ongoing process of QE tapering by the Fed. We expect the Fed to announce that it will further slow the pace of monthly asset purchases at next week’s FOMC meeting by USD10 billion to USD65 billion”, assessed analysts at BTMU.

EUR/USD support/resistance levels

As of writing the pair is down 0.14% at 1.3677 and a breakdown of 1.3530 (low Jan.23) would target 1.3517 (low Jan.21) and finally 1.3508 (2014 low Jan.20). On the upside, the next hurdle lines up at 1.3776 (2014 high Jan.2) followed by 1.3819 (high Dec.30).
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