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EUR/USD capped at 1.2400

FXStreet (Edinburgh) - EUR/USD continues to challenge the boundaries of 1.2400 the figure on Friday, although a sustainable break appears elusive so far.

EUR/USD eyes on Payrolls

Payrolls… what else? The next big event in the FX markets poises a big threat for the EUR, as a solid print will surely give extra wings to the greenback, sending spot to test (breach?) recent 2014 lows in the 1.2360 neighbourhood. Auspicious trade balance figures in Germany during September were practically ignored by the pair, more focused on today’s US releases. Consensus expects the US economy to have created 231K jobs during October, below September’s 248K. Jane Foley, Senior Currency Strategist at Rabobank, assessed, “Given that the market appears to have already built long USD positions, there is the possibility of some corrective activity. We expect that EUR/USD will move down towards 1.20 on a 12 mth view, but don’t expect the move will be in a straight line”.

EUR/USD key levels

The pair is now up 0.20% at 1.2400 with the next resistance at 1.2448 (hourly high Nov.6) ahead of 1.2533 (high Nov.6) and then 1.2547 (10-d MA). On the flip side, a breakdown of 1.2364 (low Nov.6) would expose 1.2342 (low Aug.21 2012) and finally 1.2295 (low Aug.20 2012).

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