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EUR/USD deflates to 1.2840

FXStreet (Edinburgh) - The single currency is now easing some ground vs. the greenback, pushing the EUR/USD back to the 1.2840 area after hitting 1.2870 in early trade.

EUR/USD looks to Draghi, PMIs

Traders will closely follow the upcoming testimony of President M.Draghi today, ahead of tomorrow’s key advanced PMI figures from the manufacturing sector in the euro bloc. According to previous estimates, the PMI releases will point to a further deterioration of the indicators, keeping the selling pressure around the EUR alive. In the view of Quek Ser Leang, Market Strategist at UOB Group, “Against our expectation, EUR dropped below the strong support at 1.2880 resulting in a fresh year-to-date low of 1.2828. The weak daily closing suggests further weakness is likely for today. However, oversold conditions could lead to a recovery first but as long as 1.2880 is intact, expect another leg lower towards 1.2800”.

EUR/USD levels to consider

The pair is now advancing 0.18% at 1.2852 with the next resistance at 1.2931 (high Sep.18) ahead of 1.2982 (high Sep.17) and finally 1.2995 (high Sep.16). On the downside, a break below 1.2828 (low Sep.19) would open the door to 1.2788 (61.8% of 1.2042-1.3995) and then 1.2755 (low Jul.9 2013).

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