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Forex pairs in this Article » EUR/USD (Edinburgh) -The shared currency remains close to the 1.3400 handle on Friday, with the EUR/USD hovering over 1.3390/1.3400 ahead of the opening bell in London.

EUR/USD stable after ECB

The pair seems to have found a comfort zone around 1.3400 so far, after bouncing off sub-1.3300 levels post-ECB decision to cut the refi rate to 0.25%. The recent decision of agency S&P to cut France’s credit rating to AA from AA+ was large ignored by traders. Ahead in the day, second-tier docket in the euro area would prompt investors to extend the consolidation pattern, at least until Payrolls are released (130K exp.). Richard Barwell, Senior European Economist at RBS commented post-ECB, “The most important impact of the cut is on the market’s perception of the ECB – the cut challenges the narrative that the ECB is slow to react and asymmetric in its response… The Council is not one and done: if the outlook deteriorates the Council will do more – rates are not at the lower bound and the easing bias is still in play”.

EUR/USD levels to watch

As of writing the pair is now losing 0.09% at 1.3405 and a breakdown of 1.3295 (low 7 Nov.) would aim for 1.3294 (50% 1.2755-1.3833) and then 1.3254 (low Sep.13). On the upside, the initial hurdle aligns at 1.3548 (high Nov.6) ahead of 1.3589 (high Nov.1) and then 1.3591 (38.2% of 1.3833-1.3442).
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