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Forex pairs in this Article » EUR/CHF, EUR/USD (Barcelona) - The EURUSD is playing a back and forth game today, first with a rally to 1.3404 high in reaction to comments byChina's financial regulatory authority head, as he said that the country may soon relax restrictions on foreign equities investment. Profit taking and the European session pulled the pair back down to 1.3348.

However, ECB Chief Economist Praet triggered a new "risk on" flow up to 1.3390 session high despite the contracting EMU industrial production. He defended ECB's current monetary policy as appropriate as policymakers stopped self-reinforcing downward spiral, despite the remaining downside risks to growth. Working those issues of "fear" are more important than cutting interest rates, he said.

A new selloff EUR selloff took place after the EURCHF reaching 1.2275 high, pulling the EURUSD back to 1.3355/60. Now, the pair is basically trading around the same levels of the early moments as the European morning ends and traders go for lunch. The US session will have FOMC members speaking: Dudley, Lockhart and Bernanke.

"Friday's break beyond 1.3310 highs signals, that the uptrend has been renewed, targeting new highs above 1.3500", wrote analyst Stoyan Mihaylov, pointing to a negative intraday bias, and expecting a corrective slide towards 1.3300 support area.
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