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EUR/USD clinched 1.2760

FXStreet (Edinburgh) - The common currency extends its march north on Thursday, pushing EUR/USD to test multi-day highs around 1.2760.

EUR/USD focus on Draghi

Spot is enjoying post-FOMC tailwinds in the 1.2755/60 band (levels last seen in late September), advancing more than 2 big figures since Monday lows around the 1.2515/10 region. The recent correction lower in the US dollar due to extreme positioning was accentuated yesterday after the FOMC minutes struck a more dovish tone than expected by the FX community; in light of the subsequent drop in US yields, analysts at Westpac noted that “EUR/USD may well trade back toward 1.2900-1.3000 before upside is exhausted”. Ahead in the day, the main events will be the speech by ECB’s Draghi and the weekly report on the US labour market.

EUR/USD key levels

At the moment the pair is up 0.18% at 1.2757 with the next resistance at 1.2783 (high Sep.25) ahead of 1.2816 (low Sep.22) and then 1.2848 (30-d MA). On the flip side, a breakdown of 1.2662 (10-d MA) would open the door to 1.2633 (200-h MA) and finally 1.2623 (low Oct.8).

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