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EUR/USD moving in on critical upside territory

FXStreet (Barcelona) - EUR/USD is trading at 1.2665, down -0.03% on the day, having posted a daily high at 1.2671 and low at 1.2663.

EUR/USD has managed to punch through the 1.2660 blockade and is closing 30 minute sticks above with a test of 20 pips higher on 1.2680. In Europe, the pair ignored disappointing German data, continued to ignore depressed bond yields and instead roles on punishing the committed dollar bulls. One factor that may be contributing to the strength of the Euro is that the ECB last week failed to deliver further dovishness which gives some flexibility to the price and indeed earlier we had the ECB's Weidmann speaking out who opposes ABS buying and QE. Also Fed's Kocherlakota was saying that it would be inappropriate to raise rates so soon in 2015. Fed's Dudley then put the nail in the coffin by saying the stronger dollar would keep GDP below 3% and thus dampen inflation pressures.

EUR/USD noteworthy levels

With spot trading at 1.2665, we can see next resistance ahead at 1.2669 (Weekly High), 1.2671/80 and 1.2717 (Daily Classic R1). Support below can be found at 1.2663, 1.2655 (Weekly Classic R1), 1.2646 (Hourly 200 SMA), 1.2636 (Hourly 20 EMA) and 1.2613 (Daily Classic PP).

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