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EUR/USD under pressure, ready to resume downside

FXStreet (Moscow) - EUR/USD  is consolidating with bearish bias in Asia; the pair slid to 1.2635 after having opened at 1.2646 as markets are nervous ahead of EZ PMI.

EUR/USD turned out to be a complete loser on Wednesday. The pair broke below 1.2700 and finished the day at 1.2647 with 70-pips loss as markets were gripped with fear about the state of the European banking sector. Rumors that 11 European banks failed stress-tests (the results will be published on Sunday) triggered EUR sell-off across the board. Later during the day the decline may gain traction, if flash PMI numbers come out weaker than expected to signal further deterioration of European economic activity. From the technical point of view, the nearest minor support is seen at 1.2630. Bids on approach thereto have been holding EUR bears back so far. Once it is broken, the downside may extend towards 1.2606/00

What are today’s key EUR/USD levels? 

Today's central pivot point can be found at 1.2676, with support below at 1.2612, 1.2572 and 1.2508, with resistance above at 1.2716, 1.2780 and 1.2820. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.2730 and the daily 20EMA bearish at 1.2747. Hourly RSI is bearish at 25.

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