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EUR/USD testing lows ahead of US data

FXstreet.com (Barcelona) - Increasing buying interest in the US dollar is now weighting on the pair, dragging EUR/USD to a new test of session lows in the 1.2935/40 region.

“EUR strength on the crosses likely to extend into next week given diminished odds of an ECB ease and probable stability in the final May PMIs. Suspect EUR/USD holds in its recent 1.2835-1.3000 range but the bigger break eventually should be to the downside”, noted Sean Callow, Strategist at Westpac. Later on in the US session, the Q1 GDP Annualized and the weekly results of the labour market will be in the limelight, with market consensus expecting the US economic activity to have expanded 2.5% and Claims at 340K in the week ended on May 24.

The pair is now advancing 0.10% at 1.2954 with the immediate resistance at 1.2998 (high May 22) followed by 1.3030 (high May 14) and finally 1.3051 (high May 10). On the flip side, a breakdown of 1.2838 (low May 29) would then target 1.2921 (low May 23) and then 1.2809 (low May 20).

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