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Forex pairs in this Article » EUR/USD (Edinburgh) -The shared currency found decent support around the 1.3500 handle on Thursday, with the EUR/USD picking up pace and climbing to highs at 1.3525/30.

EUR/USD consolidates beyond 1.3500

The pair is holding well its recent gains above 1.3500 the figure, slowly trimming last week’s sharp sell-off ahead of the key ECB meeting due today. The EUR remains quite resilient however, as market chatter about a rate cut or another round of LTRO seem to have cooled down, giving some respite to the single currency. In light of today’s meeting and the recent low inflation figures in the euro area, Annette Beacher, Strategist at TD Securities, commented “Draghi will emphasize the low inflation forecasts the ECB already has, that there is nothing it can do about past inflation trends, that the 2015 forecasts, to be revealed in December, will also likely show low inflation, and that this is why the market should reconsider when trying to move rate expectations higher or strengthen the currency”.

EUR/USD levels to watch

The pair is now up 0.01% at 1.3525 with the initial resistance at 1.3548 (high Nov.6) followed by 1.3589 (high Nov.1) and finally 1.3591 (38,2% 1.3833-1.3442). On the downside, a break below 1.3465 (50% of 1.3105-1.3826) would target 1.3442 (low Nov.4) en route to 1.3421 (38.2% of 1.2755-1.3833).
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