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Forex pairs in this Article » EUR/JPY, EUR/USD (San Francisco) - EURUSD trades gently offered around 1.3070 at the weekly opening, after bouncing from lows below the 1.3000 base (three-week lows) set overnight Friday.

The rally last Friday followed data that showed the December US unemployment rate was higher than consensus forecasts, adding to the case for the Fed to continue its stimulus efforts.

Technically speaking, the 50-day EMA (1.3023) seems to have attracted buying interest during Friday's dip, stalling just ahead of 50% Fibonacci retracement support at 1.2980.

Regarding market sentiment, Bloomberg is reporting that futures traders are easing bets that the euro will decline against the greenback by levels not seen since August 2011, according to figures from the Commodity Futures Trading Commission.

Sean Lee, founder of FXWW explains his current outlook in a research note, saying: "EURUSD still looks modestly constructive overall but short-term moves will depend a lot on what happens in EURJPY. If the cross suddenly starts to retrace then EURUSD could easily fall back towards 1.2800 without endangering the medium-term outlook."

Mr. Lee adds: "Keep your trading hat on here and don't get carried away with big fundamental views, as we will remain at the mercy of cross flows and sentiment."

Euro zone PPI data (YoY) for November will be the key event risk for EUR today.
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