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EUR/USD sedated around 1.2950

FXStreet (Edinburgh) - The single currency remains under the effects of yesterday’s ECB announcements, with the EUR/USD meandering around 1.2950/55.

EUR/USD focus on Payrolls

The pair dropped from the mid-1.3100s to as low as 1.2920 following the ECB meeting and subsequent press conference by President Draghi, leaving the door open for further downside in case today’s Payrolls surprise to the upside. Market consensus expects the US economy to have created 225K in August and the jobless rate to decrease to 6.1% from 6.2%. Data wise in the euro area, the GDP figures showed a flat reading inter-quarter during Q2 and 0.7% on a yearly basis, in line with consensus. “We anticipated that the break of 1.3105 could lead to acceleration lower but the down-move was much deeper than expected. The lack of any significant bounce after touching a low of 1.2933 suggests further downside risk for today (albeit at a slower pace). Expect 1.2980 to cap any short-term recovery for another leg lower towards 1.2890”, signaled Quek Ser Leang, Market Strategist at UOB Group.

EUR/USD levels to consider

The pair is now up 0.09% at 1.2956 with the next resistance at 1.3030 (high Sep.4) followed by 1.3110 (low Sep.2) and then 1.3154 (high Sep.4). On the flip side, a breakdown of 1.2920 (low Sep.4) would aim for 1.2788 (61.8% of 1.2042-1.3995) and finally 1.2755 (low Jul.9 2013).

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