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EUR/USD regains 1.2480 and beyond

FXStreet (Edinburgh) - The euro is now gathering traction again, pushing EUR/USD back to the vicinity of 1.2480/85.

EUR/USD supported at 1.2460

The pair gave away initial gains to intraday tops above 1.2520, retreating around 60 pips in response to weaker credit data from the euro area and despite positive results from the German labour market. The pullback found decent support near 1.2460 however, where better-than-expected sentiment and confidence gauges from the EMU helped spot to regain lost ground. Furthermore, the current EUR bounce is being bolstered by the improvement in December’s German Gfk Consumer Confidence, coming in at 8.7 vs. 8.6 expected and previous. In the meantime, Mario Draghi is giving a speech on ‘Stability and Prosperity in Monetary Union’, emphasizing that ‘Euro is and must be irrevocable in all states’.

EUR/USD levels to watch

As of writing the pair is down 0.21% at 1.2483 and a breach of 1.2443 (low Nov.26) would open the door to 1.2402 (low Nov.25) and then 1.2358 (2014 low Nov. 7). On the other hand, the immediate resistance lines up at 1.2532 (high Nov.26) followed by 1.2550 (30-d MA) ahead of 1.2569 (high Nov.21).

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