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Forex pairs in this Article » EUR/USD (Athens) – The EUR/USD continues to trade flat since the kick off of the Asian trading session, ahead of today’s Euro land PMI’s and US Trade balance data.

EUR/USD consolidates but market participants focus on ECB rhetoric

The EUR/USD continues to set up a slightly upward trend, showing it has not run out of its uptrend momentum. Ahead of, there are crucial market drivers data, such as the PMI of the power horse of Euro zone, i.e. Germany as well as the Euro land PMI. However, traders should by far look behind the curtains to realize how sustainable could EUR/USD uptrend shift could be. Briefly, it seems that as the single currency continues to climb to an uptrend shift, the ECB rhetoric will be intensified in many ways in the coming weeks in order to halt the common currency’s advance.

Technical Aspects on the EUR/USD

Karen Jones Head Technical Analyst of Commerzbank, mentions that the “EUR/USD is in new 23 month highs. The next resistance is the top of the 3 month channel at 1.3833/37, this is also the location of the 61.8% retracement of the move down from 2011 and represents the last defence for the major resistance at 1.3958/1.4002 band, which represents the 50% retracement of the move down from 2008 and the 2008-2013 resistance line. While we acknowledge that the market is bid near term, we have very little to suggest that this latter level will be overcome.”
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