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Forex pairs in this Article » EUR/USD
FXstreet.com (Athens) – The ">EUR/USD was trading higher in the early Asian opening trading session, inspired by the general risk on sentiment as well as by the supported bid of the EUR/JPY, but in the wake up of the European session finds itself lower as upward momentum is waning.

EUR/USD consolidates around 1.3800; still lacks impetus to overcome the 61.8% Fib. at 1.3833

The EUR/USD was trading around 1.3820 in the Asian trading session, due to the fact that the solid Asian equity markets supported a bid in the EUR/JPY. What’s more, the EUR/USD cross was supported enough by the risk on sentiment across the board, but still is obvious that lacks the momentum to overcome the 61.8% Fibonacci handle as of 1.3833 (of the 2011-2012 fall). Ahead of, the week is full of a flurry of US data, while the highlight of the week is by far the FOMC meeting on Wednesday. Today, market participants should bear in mind that we will witness the release of September industrial production and September pending home sales, plus the October Dallas Fed manufacturing survey. While they are all second tier data, traders should not catch themselves off guard if the data releases influence to a major or less extent the American’s dollar trend. Finally, ECB’S Coeure mentioned through news wires that “there is a need to clean up the banking system, reduce financial fragmentation and explore avenues for non-Bank financing.”

Technical Aspects on the EUR/USD

Karen Jones Head Technical Analyst of Commerzbank, mentions that the “EUR/USD last week rallied into new 23 month highs. The next resistance is the top of the 3 month channel at 1.3833/58, this is also the location of the 61.8% retracement of the move down from 2011 and represents the last defense 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. We note the 13 count, the TD perfected set up and the doji – all imply failure here.”
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