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EUR/USD: Pressure to the downside, Draghi weighs

FXStreet (Bali) - EUR/USD continues its slow but steady grind lower, with Monday's dovish remarks by ECB's Draghi not helping the case for a EUR corrective run higher.

Jim Langlands, Founder at FXCharts, notes: "The Euro is stuck in a 50 point range as it consolidates ahead of today’s manufacturing PMI’s, which could again put the pressure on the Euro should they continue the recent theme of underperformance."

EUR saw a slight pressure to the downside on Monday, following a speech by ECB President Mario Draghi before the economic affairs committee of the EU parliament, noting that the Eurozone recovery is losing momentum, with risks “clearly on the downside”.

Technically, Jim remains bearish: "The daily charts are reaching oversold levels and so the downside momentum should begin to slow here, but I don’t think it is going to turn around much and once the charts have had the time to unwind, which may take a few days, I suspect that we are in for a run towards the Nov 2012 low at 1.2660 and then 1.2500 (76.4%of 1.2041/1.3995)."

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