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Forex pairs in this Article » EUR/USD (Ediinburgh) -The shared currency ignored the US data from the Empire State index, with the EUR/USD navigating below the 1.3500 handle.

EUR/USD focus on US fiscal stalemate

The pair remained practically indifferent to the regional gauge of the manufacturing sector by the NY Empire State index, dropping to 1.52 for the month of October, badly missing the median at 7.0 and down from September’s 6.29. There are no further releases in the US today, with only speeches by Fed’s W.Dudley and R.Fisher, due later. “The focus is clearly still on US politics at the moment and further progress would see an extension of this USD relief rally. On the charts, the first key area of support is spotted in 1.3425/40 area (the gap created by the September FOMC-surprise). Looking at the indication from the fixed income markets, however, short term yield spreads continue to be more consistent with EUR/USD closer to 1.30/32”.

EUR/USD key levels

At the moment the pair is losing 0.52% at 1.3489 and a breakdown of 1.3467 (low Sep.30) would expose 1.3462 (low Sep.25) and finally 1.3444 (MA30d). On the upside, the initial resistance lies at 1.3571 (high Oct.15) followed by 1.3598 (high Oct.14) and then 1.3605 (high Oct.9).
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