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Forex pairs in this Article » EUR/USD (Edinburgh) - The pair’s upside remains unable to follow through the 1.3480 level so far, taking the EUR/USD to the current area of 1.3475/70.

EUR/USD supported at 1.3400

The earlier pullback of the EUR/USD found good support in the vicinity of 1.3400 the figure, picking up pace since then to session tops in levels just shy of 1.3480. The upbeat tone from Draghi’s speech, talking down the likeliness of the ECB to adopt negative deposit rates offset the less auspicious results from the manufacturing/services PMIs, giving legs to the upside. “We hold a year-end EUR target of 1.3100 and a 2014 year-end target of 1.25. Diverging Fed and ECB policies as well as growth profiles are the key drivers of our expectation of EUR weakness. This is complicated further by the politically charged discussions to come around a potential backstop as well as the banking union and what could potentially be another aid program for Portugal”, noted Camilla Sutton, Chief Strategist at Scotiabank.

EUR/USD key levels

At the moment the pair is up 0.06% at 1.3440 and a breakout of 1.3441 (high Nov.21) would bring 1.3454 (MA10d) and then 1.3584 (high Nov.20). On the downside, the initial support lines up at 1.3390 (low Nov.13) ahead of 1.3359 (low Nov.12) and finally 1.3345 (low Nov.11).
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