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EUR/USD eases to 1.2780

FXStreet (Edinburgh) - The common currency has now left the 1.2800 neighbourhood, dragging EUR/USD to test session lows around 1.2780.

EUR/USD weaker after Coeure comments

Spot came down from levels beyond 1.2800 the figure following appreciations by ECB’s B.Coeure, in which he stressed that the European Central Bank needs to deliver inflation figures just below the 2% target and that the bank will keep pumping liquidity to the economy and expanding its balance sheet. Another ECB member, E.Nowotny, also commented that a lower exchange rate will benefit the economic growth, and he sees the region growing 0.9% this year and 1.6% in 2015. Next of note in the euro area will be the speech by BuBa’s J.Weidman. “Despite the unexpected dip below the short-term support at 1.2770, EUR rallied strongly from the low to close higher by end of the day. While the undertone is positive, any further up-move will likely struggle near the overnight high at 1.2845/50. A break below 1.2760 would indicate a retest of the 1.2705/10 low”, observed strategists at UOB Group.

EUR/USD levels to consider

At the moment the pair is down 0.10% at 1.2793 with the next support at 1.2724 (21-d MA) followed by 1.2723 (10-d MA) and then 1.2705 (low Oct.16). On the upside, a break above 1.2845 (high Oct.16) would expose 1.2853 (23.6% of 1.3995-1.2501) and finally 1.2887 (high Oct.15).

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