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Forex pairs in this Article » EUR/USD
FXstreet.com (Barcelona) - The EUR/USD may be in the third and final stage of an “abc” correction lower now with a downside target of 1.3489 to 1.3515.

Bouts of Dollar strength show institutional faith in “debt ceiling” resolution

Big-money players that drive the currency markets are not yet buying into the idea that the US politicians will fail to raise the debt ceiling by October 17th - as evidenced by the strength in the greenback which weighed on the EUR/USD cross late in Tuesday’s session.

Wednesday, in addition to watching the news flow out of Washington, EUR/USD traders will be monitoring the ECB Monthly Report, German Industrial Production and US mortgage application data.

Technical outlook for EUR/USD

Technicians say the EUR/USD appears to have short-term resistance at Monday’s close and correction resistance at 1.3580 (on an hourly closing basis) with 1.3606 above that. Support for the cross comes in at 1.3489.
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