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EUR/USD notches another day of gains to close above 1.3000

The EUR/USD finished sharply higher for a second straight day, blasting through important resistance at 1.3000 to close the day up106 pips at 1.3045.

Analysts were citing the US GDP figures which were released at 12:30GMT as a key catalyst for the weakness in the greenback. According to John Kicklighter, Senior Currency Strategist at DailyFX, “this past session’s GDP update and pending home sales report simply do not have the clout to direct the masses’ forecasts. For that matter, Friday’s event risk is equally impotent. For a committed bid in risky assets or exit from those stimulus-supported markets, we may have to wait for more potent data (NFPs) or Fed commentary (Yellen, Williams) next week. In the meantime, the dollar may have taken the speculation of an impending taper a little too far. The US Dollar has posted its first back-to-back daily decline since it began its impressive run to multi-year highs at the beginning of the month. Where equities benefit from quiet on Fed speculation, the dollar is more likely to suffer for it."

From a technical perspective, the recent price action in the EUR/USD is impressive and given the technical developments further upside is not out of the question. On the daily chart, the pair had been forming a pennant consolidation pattern which was confirmed with the close above the upper resistance boundary located at 1.2980. The measured move target from this pattern targets 1.3210. Initial support sits at 1.2980 (noted above), followed by 1.2919 (the 9dma). First resistance sits at 1.3061 (high of session), followed by 1.3117 (the 20 dma on wkly chart)

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