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Forex: EUR/USD sidelined at 1.3160 after Fed officials' speeches

The EUR/USD is trading sidelined to 1.3160 which, according to Windsor Brokers analyst Slobodan Drvenica, could confirm a bearish breakout in case of a break below. The pair is under pressure on US Fed Powell and Rosengren speeches.

Powell counts with net increases in Fed remittances to US treasury, but those are not an issue for Fed fiscal policy. Rosengren said that QE helps labor market growth, as well as GDP and more tax revenue, reducing government entitlement expenditures, but also pushes debt/GDP higher in the US. Rosengren estimated an amount of $750bn in QE to create +1.6% in real GDP, while reducing unemployment by 0.25%

"In the 4 hours chart the bearish tone persists, with RSI already off extreme oversold readings. The downside remains favored with a break below 1.3150 needed to see a downward extension today", wrote FXstreet.com analyst Valeria Bednarik, pointing to resistance at 1.3210.

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