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EUR/USD back above 1.2500 on technical factors

FXStreet (Moscow) - EUR/USD  has settled above 1.2500 pivot, currently at 1.2519, after having started the day at 1.2485; the upside momentum has stalled at minor resistance of 1.2530 so far.

EUR/USD has been on recovery mode since late Tokyo session on Monday. The pair has gained about 80 pips after having touched a new multi-year low at 1.2440 at the beginning of yesterday’s trading day. The recovery has a technical and speculative nature. It is caused mostly by EUR short-covering from deeply oversold territory. Lower than expected PMIs in Eurozone signal that the economic situation in the currency union has aggravated, which may be reflected in EZ economic growth forecasts released by European Commission later during European hours. From the technical point of view, EUR/USD has effectively closed the Monday gap, though to continue the upside the pair needs a sustained break above 1.2540/50 resistance area with a strong option barrier at 1.2550. On the downside the nearest support is seen at 1.2500 (psychological level, option expiry). Once broken, the bearish momentum may gain traction and push the pair towards Monday’s low at 1.2440.

What are today’s key EUR/USD levels? 

Today's central pivot point can be found at 1.2482, with support below at 1.2448, 1.2406 and 1.2372, with resistance above at 1.2524, 1.2558 and 1.2600. Hourly Moving Averages are bearish, with the 200SMA bearish at 1.2635 and the daily 20EMA bearish at 1.2673. Hourly RSI is bullish at 61.

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