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Forex pairs in this Article » EUR/USD (Edinburgh) -The shared currency is entering the last part of the US session above the 1.3500 handle, with the EUR/USD hovering over 1.3515/20.

EUR/USD focus on the EC

It seems the pair have found a new comfort zone just above 1.3500 the figure early in the week, with the next significant release in the euro area being tomorrow’s Economic Growth Forecasts by the European Commission. The event, however relevant, would lack the potential to be a market mover, eclipsed by the ECB’s gathering on Thursday and October’s Payrolls on Friday. In light of the ECB meeting, Strategist Camilla Sutton at Scotiabank observed, “With a disinflationary environment the ECB will have little choice to but to turn more dovish. We are EUR bears, holding a year-end target of 1.31 and a 2014 year-end forecast of 1.25”. The expert also added that short-term technicals point to the mixed area, although turning bearish.

EUR/USD levels to watch

The pair is now up 0.23% at 1.3519 and a break above 1.3589 (high Nov.1) would expose 1.3638 (MA21d) and then 1.3696 (low Oct.30). On the downside, the initial support lies at 1.3442 (low Nov.4) ahead of 1.3472 (low Oct.16) followed by 1.3468 (50% of 1.3105-1.3833).
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