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Forex: EUR/USD still below 1.3200

EUR/USD broke Thursday its mid term ascending trend line coming from July 1.20s lows, now above around the 1.3250 area, with global equity and commodity markets to the downside, and bonds and USD to the upside, showing the inflows to considered shave haven assets. Last at 1.3190, the pair bounces from fresh 1-month lows at 1.3160 printed in late NY trade, down -1.10% for the week so far.

“If EUR/USD is to go higher,” says FXWW founder Sean Lee, “it really needs to respect major technical support points like 1.3060, which is a double Fibo retracement. Reports from the fixed income market suggests that there are still a lot of inflows to happen into the EZ, to the detriment of currencies like the JPY and the GBP primarily, so overall I prefer the buy-dip strategy,” the analyst concludes.

As for Valeria Bednarik, Chief Analyst at Fxstreet.com, the analyst sees the hourly chart with “indicators standing below their midlines, showing no actual strength yet far from the extreme oversold levels reached earlier today: while indicators correct, price remains at lows, which should signal further selling pressure,” Valeria suggests, adding: “In the 4 hours chart technical readings start to show signs of exhaustion to the downside, but remain in oversold territory. Key support to break is the 1.3150 area, where the pair presents several intraday highs and lows from early January: once below, 1.3080 are comes as a possible target today,” she concludes.

Valeria spots support levels at: 1.3150, 1.3110 and 1.3080, while resistance levels at: 1.3210, 1.3245 and 1.3290.

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