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Forex pairs in this Article » EUR/USD (Edinburgh) -The single currency is flirting with 1.3260 after a better tone from the German manufacturing PMI for the month of July, lifting the EUR/USD to fresh highs at the same time.

EUR/USD extends the upside

The advanced German manufacturing PMI surprised investors on Wednesday, advancing to 50.3 vs. 49.4 expected while Services PMI climbed to 52.5. Next on tap will be the EMU PMI ahead of US New Home Sales and Markit manufacturing PMI. Derek Halpenny, European Head of Global Markets Research, commented, “We maintain that these supportive flows for the euro will ebb away and that EUR/USD will turn lower. 1.3240-1.3260 is a range of resistance and then the trendline from the February and June highs comes in at around 1.3330. If these were broken, a reappraisal of forecast levels would be required”.

EUR/USD levels to watch

At the moment the pair is advancing 0.17% at 1.3246 with the next hurdle at 1.3255 (high Jun.21) ahead of 1.3261 (76.4% of 1.3417-1.2755) and then 1.3302 (high Jun.20). On the downside, a break below 1.3190 (low Jul.24) would open the door to 1.3164 (low Jul.23) and then 1.3115 (low Jul.22).
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