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EUR/USD risk returning to the upside - FXStreet

FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that It was quite an active day across the forex board, with the USD finally edging lower despite a strong GDP revision for the 3rd quarter, up to 3.9% from an advance reading of 3.5% and an expected 3.3%.

Key Quotes:

“The EUR/USD pair dived down to 1.2400 but failure to break below it alongside with disappointing US Consumer confidence and Richmond Manufacturing Index, both well below expected, overshadowed the encouraging growth report, and triggered a strong bounce to fresh daily highs”.

“Posting a second day in a row of gains, the pair stalled at 1.2486 20 DMA, trading a handful pips below it as the day comes to an end. In the short term, the 1 hour chart shows price extended above its 20 SMA but hovers now around 100 and 200 SMAs both around current levels and lacking directional strength”.

“Indicators in this last time frame stand in positive territory but lost early upward potential, while in the 4 hours chart indicators head strongly up, crossing their midlines to the upside and suggesting some further advances”.

“Despite the dominant bearish trend, short term risk has then turned to the upside, with a break above 1.2520 exposing the highs in the 1.2560/70 price zone”.

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