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EUR/USD testing highs near 1.2540

FXStreet (Edinburgh) - The single currency is creeping higher at the beginning of the week, lifting EUR/USD back to the 1.2540/45 band, or session highs.

EUR/USD eyes on the Sentix

The pair shrugged off disappointing figures from the German factory orders (contracting 5.7% inter-month in August) in early morning, extending its advance to the upper end of the range around 1.2540. “Euro upticks were turned back from 1.2700-15. This area is likely to become formidable resistance. More immediately, the $1.2550 area may cap the near-term. . The charts suggest initial potential toward $1.2450 in the coming days, but the $1.2135 area is the next major objective. It corresponds to a 38.2% retracement of the euro's large multi-year uptrend from $0.8230 in October 2000 to $1.6040 in July 2008”, observed analysts at BBH. Next of note in the data front will be a gauge of Investors’ Confidence in the euro area, tracked by the Sentix index.

EUR/USD levels to watch

As of writing the pair is up 0.19% at 1.2541 with the next resistance at 1.2676 (high Oct.3) followed by 1.2699 (high Oct.2) and finally 1.2703 (10-d MA). On the downside, a breach of 1.2502 (76.4% of 1.2042-1.3995) would expose 1.2493 (low Aug.31) and then 1.2487 (low Aug.30).

This week's EUR/USD target will be 1.2350

In the opinion of Independent Analyst Vladimir Mihaylov EUR/USD will continue its decline this week with the target level now at 1.2350.
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