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EUR/USD sidelined above 1.2700

FXStreet (Moscow) - EUR/USD  has moved off form the Asian low at 1.2706 and settled at 1.2728; the pair is consolidating with bullish bias ahead of European opening

EUR/USD crashed to 1.2716 in Europe on Tuesday after a failed attempt to get above 1.2840. EUR bears used rumors about ECB buying corporate bonds as a pretext to enter new shorts, though the info has not been confirmed yet. The pair finished the day at 1.2714, above 1.2700 pivot level. It means that further downside may be limited at least until after FOMC meeting next week. While the European calendar is empty, investors are likely to focus on US inflation numbers. The annual CPI is expected to slow down to 1.6% in September against 1.7% in August, while Core CPI might grow slightly towards 0.2% m/m, 1.7% y/y against 0.0% m/m, 1.7% y/y in August. Weaker data might force investors to adjust their forecasts about first rate hike timing and put USD under pressure, though EUR.USD would need a clear break below 1.2700 to extend the downside towards 1/2640. The upside is limited by 1.2755.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.2757, with support below at 1.2673, 1.2630 and 1.2546, with resistance above at 1.2800, 1.2884 and 1.2927. Hourly Moving Averages are mixed, with the 200SMA bearish at 1.2732 and the daily 20EMA flat at 1.2757. Hourly RSI is bearish at 39.

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