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EUR/USD bouncing off 1.2500

FXStreet (Edinburgh) - The extreme weakness in the single currency seems to have found support in the vicinity of 1.2500 the figure on Friday, with EUR/USD now managing to clinch to 1.2510/15.

EUR/USD softer on data

The bearish trend in the pair has intensified today following the very positive US docket, with September’s Payrolls climbing to 248K and the ISM Non manufacturing surpassing expectations at 58.6, albeit a tad lower that August’s 59.6. There are no more releases in the US economy or Euroland, as markets slowly surrender to the post-NFP lull ahead of the weekend. Chief FX Straregist Camilla Sutton at Scotiabank said technicals remain bearish, adding, “most technical studies remain in bearish territory and warn of further downside risk. A close today below 1.2620 would warn of further near term downside, with some support at the recent 1.2571 low, but stronger support at 1.2500; resistance comes in at the recent high of 1.2699, followed by 1.2720”.

EUR/USD levels to watch

At the moment the pair is losing 1.20% at 1.2515 with the next support at 1.2502 (76.4% of 1.2042-1.3995) followed by 1.2493 (low Aug.31) and then 1.2487 (low Aug.30). On the upside, a break above 1.2676 (high Oct.3) would target 1.2699 (high Oct.2) en route to 1.2703 (10-d MA).

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EUR simply leaked lower throughout both the Asian and European sessions before the US shift with the NFP’s hit, with weakness from France, Italy and Spain’s services PMI starting the ball rolling as Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted.
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