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Forex pairs in this Article » EUR/USD, USD/CHF, USD/JPY
FXstreet.com (San Francisco) - The Euro traded higher on Friday despite ECB's Mersch affirmed the central bank has tools to flooding the economy with the single currency. Euro bears were concerned and a short covering was played in EUR/USD and EUR/JPY. However, the CFTC said EUR net long declined to 17k vs long 33k in the previous week.

The EUR/USD closed its first positive week in three with the pair completing 200 pips recovery from the 1.3300 reached on November 7. The Euro performed negative against the US Dollar only on Thursday this week. "This was a week of recovery for the euro with the currency making higher highs and higher lows against the dollar on a daily basis," BK Asset Management's analyst Kathy Lien commented in a recent report. "From a technical perspective this is a sign of reversal that signals a stronger recovery for the currency pair but the improvement in risk appetite is the only fundamental factor supporting the move."

With the EUR/USD closing virtually at 1.3500, steady gains above 1.3580 area may bring the pair to break the 1.3600 key technical resistance and then to see another approach to 1.3700.

The EUR/JPY jumped around 80 pips in the day to close the week at 135.26, highest level since in November and the highest weekly close since October 2009. The single currency rallied around 400 pips against the Japanese Yen since November 7 low at 131.21 to today's high at 135.30. Next resistance is at October highs around 135.45.

The GBP/USD tested the upper side of the last week range around 1.6135 and closed at 1.6115 in its third positive day in a row. The USD/JPY traded in consolidation mode above the 100.00 after reaching 1-month highs around 100.45. Next resistances are at 100.60 and 100.80.

Main headlines in the American Session:

US: NY Empire State index (Nov) contracted to -2.21

US: Import Price Index (Oct) fell 0.7% MoM

Canada: Manufacturing Shipments (Sep) rose 0.6% MoM

US: Industrial Production dips 0.1% in October, against forecasts

US: Wholesale inventories grow 0.4% in September, as expected

Fitch affirms Switzerland at AAA: Outlook stable

Unstoppable rally in Wall Street, Dow and S&P close 6 week of gains
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