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EUR/USD regains 1.2600 and beyond

FXStreet (Edinburgh) - The common currency managed to bounce off sub-1.2600 lows during the European morning, now lifting EUR/USD back to the 1.2615/20 band.

EUR/USD recovers after consumer confidence

Spot is now looking to consolidate the rebound above the 1.2600 handle, boosted by the unexpected drop to 86 in the US Consumer Confidence for the month of September. There are no more data releases in the region today, with the next risk event being tomorrow’s Chinese manufacturing PMI gauged by NHS. (51.2 exp.) ahead of the final figures of the manufacturing PMIs and GDP in the bloc. Camilla Sutton, Chief FX Strategist at Scotiabank, noted, “all studies warn of strong downside momentum and the only warning on the chart is the RSI which has now fallen firmly into oversold territory. However without a supporting warning signal, EUR is likely to continue its downward trend. The next level of support lies at 1.2500”.

EUR/USD levels to watch

As of writing the pair is retreating 0.44% at 1.2628 and a break below 1.2561 (low Sep.6 2012) would target 1.2502 (76.4% of 1.2042-1.3995) en route to 1.2493 (low Aug.31). On the flip side, the initial hurdle lines up at 1.2664 (low Sep.29) followed by1.2715 (high Sep.29) and finally 1.2761 (high Sep.26).

USD/JPY sold at 109.85; bears defending 110.00

The USD/JPY rallied 60 pips in the European session from 108.25 to reach fresh highs at 109.85. At this level, the pair found selling interest and it was launched back to 109.50.
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