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Forex pairs in this Article » EUR/USD (Barcelona) - EUR/USD exchange rate is calmly trading along 1.3070 bids after an excruciatingly slow Asian session, with the topside well contained by 1.3080.

Euro sustains bid tone after weak US retail sales

EUR/USD was benefited by a poor U.S. retail sales reading, which outweighed dovish comments from the ECB board member Hansson, who indicated there is room to cut rates further, and a downgrade to the EFSF – European Financial Stability Facility- to AA+ from AAA by Fitch. As Jim Langlands, Founder at FXCharts in Australia, notes: "Nothing has changed in EURUSD, and ahead of Bernanke's testimony on Wednesday, do not get too excited about directional movement."

EUR/USD technical picture

The pair is trading horizontally between level of resistance at 1.3080 and support at 1.30. A resolution outside the current range is needed to define the next moves, with a break higher exposing 1.32 round number ahead of 1.3220 - July 11 late U.S. spike - followed by 1.3150 - first lower high post July 10 spike - and 1.32 - last week's high-. On the downside, 1.3030 provides intraday support on dips ahead of 1.30, proven very reliable this week.
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