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EUR/USD recovery finds resistance at 1.2930

FXStreet (Córdoba) - The recovery of the euro from 14 month lows found resistance at 1.2930 during the American session. During the last hours EUR/USD has been moving sideways, consolidating gains, trading in a range between 1.2930 and 1.2905.

The pair is still trading below the level it had before the release of the FOMC statement but far from the lows; EUR/USD bottomed at 1.2833 earlier reaching the lowest price since 2013.

EUR/USD outlook

Despite today’s bullish correction the dominant trend is still bearish. “The latest developments support our outlook for a stronger US dollar going forward”, said Derek Halpenny, strategist at The Bank of Tokyo-Mitsubishi UFJ.

“We stick to our updated EUR/USD forecast of 1.2700 by the end of the year, while acknowledging downside risks to that level”, added Halpenny that noted that the DXY index is up 6% since late June and some anticipation of rising government bond yields may be priced in.

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