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EUR/USD bounces off 1.2740

FXStreet (Edinburgh) - The current intraday pullback in EUR/USD seems to have found buying interest in the proximity of 1.2740, now regaining 1.2760/65.

EUR/USD lower after US data, risk aversion

Spot was once again rejected from the 1.2840 region, sparking the ongoing retracement and returning to the red territory. The corrective descent picked up pace after US investors’ sentiment tracked by the Reuters/Michigan index surprised markets to the upside, advancing to 86.4 for the present month vs. forecasts for a small decline. “Even though the market may currently be adjusting its expectations regarding how soon the Fed is likely to start hiking rates and shaking out its long USD positions, we still expect EUR/USD to edge towards 1.22 on a 12 mth view”, signaled Jane Foley, Senior Currency Strategist at Rabobank.

EUR/USD levels to consider

At the moment the pair is down 0.42% at 1.2755 with the next support at 1.2719 (10-d MA) followed by 1.2717 (21-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).

USD/JPY remains bearish

USD/JPY is trading at 106.72, up 0.37% on the day, having posted a daily high at 106.80 and low at 106.13.
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