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Forex: EUR/USD supported by yesterday's lows

The EUR/USD remains pressured as the week ends. Having plunged by 100 pips yesterday, the market found support at 1.3316 low and was pulled to 1.3350. Today, more downside momentum sent the pair back to those lows, printing a new February low at 1.3312. However, the EUR/USD is not ready to extend losses further. Maybe, not yet....

EMU trade surplus in December was narrowed from €13B (revised from €13.7B) to €11.7B, instead of ending at €13.1B as expected.

US industrial production and Reuters/Michigan consumer sentiment will be published during NY session: "For industrial production, we are above the market (+0.2%) in expecting that higher utilities output will contribute to a 0.4% advance", wrote TD Securities analyst Alvin Pontoh, expecting modest improvement in consumer confidence, with the index increasing to 76.0 from 73.8 (market: 74.8).

"Near-term bears keep the downside favored, with bounce off yesterday’s low at 1.3313, seen corrective, with rally being capped under psychological 1.3400 barrier at Fib 38.2% of 1.3518/1.3313 downleg and 55 day EMA", wrote Windsor Brokers analyst Slobodan Drvenica, excpecting fresh extension below 1.3300/1.3265 breakpoint, and risking a drop to 1.3170, 17 Sep previous high. "Further recovery cannot be ruled out, with Fibonacci barriers at 1.3415/40, 50% / 61.8%, seen on a lift above 1.3400, but only break above 1.3500 will neutralize bears", he added.

European markets down on calls for less attention to fiscal and monetary stimulus

The German DAX 30 (-0.25%), the French CAC 40 (-0.20%), the Italian FTSE MIB (-0.15%) and the Spanish IBEX 35 (-0.56%) are edging lower on Friday like most European equity indexes, as well as futures for the American S&P 500, Nasdaq 100 and Dow Jones 30 that signal a lower opening by 10-15% ahead of the NY session and consumer confidence and industrial production data releases.
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