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Forex pairs in this Article » EUR/USD (Edinburgh) - The single currency is prolonging its correction higher after bottoming out in the boundaries of 1.2800 the figure on Friday on solid data from US Payrolls. Better mood amongst investors is spreading faster after Greece clinched another tranche of its aid package and the political effervescence has been allayed in Portugal.

According to Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair “is bouncing from the 1.2793 gentle sloping support line drawn from the November 2012 low to the 2013 lows. We have a 13 count on the 240-minute chart and the market looks likely to see more of a corrective rebound over the next couple of days”.

In light of the recent statement by the ECB and yesterday’s speech by President Draghi, Brian Martin, Senior Strategist at ANZ, commented, “the fact that any tightening in policy is very distant means that interest rates will stay low for a very long time… The market is taking this new communication policy from the ECB as a green light to sell the EUR. A period of further correction on some key EUR and GBP crosses cannot be ruled out”.
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