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Forex pairs in this Article » EUR/USD (New York) - The EUR/USD foreign exchange rate collapsed earlier, bottoming out in the 1.3223 level (session low), on the heals of mixed US data Thursday.

In the United States, the Consumer Price Index (YoY) came in at +2.0% in July, in line with expectations. Moreover, the Consumer Price Index Ex Food & Energy (YoY) grew +1.7% in July, matching estimates. Initial Jobless Claims were reported at 320K, beating projections of 335K. Finally, Net Long-Term TIC Flows (June) yielded a figure of $-66.9B, against expectations of $31.3B.

EUR/USD strategic bias

According to Karen Jones, an analyst at Commerzbank, “Despite staging a minor bounce, EUR/USD should remain below its current August high at 1.3401 and still eyes the 1.3208/1.3188 support zone. It is where the July 11 high and the current August low were made. Only a drop through this support area will alleviate recent upside pressure. Failure here will target the 1.3000 region. Loss of this zone is needed to re-target the 1.2755/40 July and April lows.”

EUR/USD technical levels

Despite bouncing off its session lows, the EUR/USD still is buried in negative territory after a staunch collapse during US trading. Presently, the pair is now operating at 1.3238, incurring a fall of -0.10% off its opening. In terms of the technical levels, the EUR/USD is testing support at 1.3243, a break of which will open up 1.3222 and 1.3202.
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