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EUR/USD finds oxygen at 1.2420

FXStreet (Edinburgh) - The sharp sell off in the EUR/USD seems to have found some support in the 1.2420 vicinity on Friday.

EUR/USD in multi-day lows

Spot keeps suffering the effects of the dovish appreciations by ECB’s Draghi earlier on in his speech in Frankfurt, falling to the area of 1.2425/20 where it presumably found some support. The pair is thus eroding its weekly gains, trading back to levels last seen on Friday 14th November. Without any data releases left in Euroland and an empty docket in the US economy, the demand for the euro would likely remain subdued at current levels. According to Camilla Sutton, Chief FX Strategist at Scotiabank “several technical studies are warning of building upside pressure; while others have not shifted from bearish territory. The lack of clarity from technicals warns of a period of range trading”.

EUR/USD key levels

At the moment the pair is losing 0.87% at 1.2436 with the next support at 1.2400 (psychological handle) ahead of 1.2398 (low Nov.4) and finally 1.2394 (low Nov.11). On the flip side, a breakout of 1.2602 (high Nov.19) would aim for 1.2614 (low Oct.23) and then 1.2617 (high Oct.31).

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