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EUR/USD surges 3/4 cent last hour, Ebola reports in US weigh

FXStreet (Bali) - EUR/USD is soaring in late US trade, reaching levels as high as 1.2760 after a 3/4 of a cent spike in the last hour, with the market apparently over-reacting to new ebola cases being reported from Boston's Logan International airport.

According to Boston Globe: "Logan International Airport officials are sending in a team in full hazmat suits after reports that five people on board a United Arab Emirates flight from Dubai are exhibiting flu-like symptoms. Out of an abundance of caution, airport officials decided to isolate the sick passengers and evaluate their condition. Brelis said hazmat teams began responding to concerns about Flight 237 at about 2:45 p.m. on Monday.

It is important to remind traders that the US Dollar remains a crowded long trade, and with the DXY having reached a monthly supply area above 86.50 last week, from where heavy sales/long liquidation was initiated, is currently assisting on the ongoing USD long squeeze. The increase in EUR/USD volatility should be a cautionary sign that a temporary bottom is being built for a more meaningful recovery. The pair is about to close above the 20-day EMA, an occurrence not seen since early July.

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