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EUR/USD: Above 1.2560/70 eyes 1.2660 - FXStreet

FXStreet (Bali) - According to Valeria Bednarik, Chief Analyst at FXStreet, if EUR/USD manages to extend beyond 1.2560/70, advances up to 1.2660 are likelY, notes Valeria Bednarik, Chief Analyst at FXStreet.

Key Quotes

"The dollar opens the week with a soft tone across the board, extending last Friday’s decline in what has been a clear profit taking move: the EUR/USD pair reached 1.2400 price zone mounted on positive data, as Michigan Consumer Sentiment soared to 89.4, from where the pair began climbing to post a weekly high of 1.2545."

"Market players may decide to extend profit taking during the upcoming days, as the latest COT report shows positions against the EUR reduced partially in the week ended last Friday, albeit dollar longs are still majority. Technically, the short term picture for the pair shows indicators exhausted near overbought levels but not yet suggesting a probable downside correction, while price extended way above its moving averages."

"In the 4 hours chart indicators stand in positive territory albeit losing the upward momentum, whilst 20 SMA aims slightly higher around 1.2460. The immediate resistance stands at 1.2560/70 price zone, where the pair presents some daily highs and lows in September and October."

"If price manages to extend beyond the level, then further advances up to 1.2660 are likely, but if the level holds attracting sellers, the pair will likely return to the 1.2400 price zone."

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