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Forex pairs in this Article » EUR/USD (Edinburgh) -Back to square one. The EUR/USD dropped to session lows in sub-1.3260 levels just to gather steam and climb back to the current 1.3275/80 region.

EUR/USD keeps the weekly range

Disappointing data from US retail sales during August plus new rumours denying any advantage from Larry Summers to run the Fed after Ben Bernanke have propped the earlier bull run beyond 1.3320, just to run out of vigour afterwards. “We think that the spot market will eventually catch up with spreads—rather than spreads reverting higher, in line with current spot levels. The Fed may introduce a taper-lite and enhanced forward guidance which may dampen short-term yields somewhat but the ECB retains a dovish bias also policy makers remain very cautious about the outlook. We favour EUR/USD shorts”.

EUR/USD technical levels

The pair is now losing 0.11% at 1.3284 with the immediate support at 1.3243 (low Sep.11) followed by 1.3230 (low Sep.10) and finally 1.3228 (MA10d). On the upside, a break above 1.3325 (high Sep.11) would open the door to 1.3343 (high Aug.29) and then 1.3399 (high Aug.28).
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