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Forex Flash: EUR/USD to test 1.30 – Societe Generale

According to SG's FX Strategists: “A sharp short correction seems to have changed the market’s psychology for institutional investors. It sees itself potentially overextended and is now switching to a mentality of selling on rallies to reduce its risk profile. For now, it means mostly risk management,” the analysts say.

“Risk management does mean reducing USD shorts and some Euro long exposures. We have an Italian 10 year bond at 5AM EDT and a few weeks of political uncertainty as Berlusconi’s attempt to form a coalition are rebuffed,” they expand, adding: “These and a large scale widening of spreads between the periphery and core of Europe are the ingredients for the market to test the 1.30 and probe in the coming weeks a break to the 1.20-1.30 range, earlier than we had expected,” SG FX team conclude.

Forex: EUR/USD closes flat on the day after sell off; Heading to 1.3000?

After falling to 1.3015 and rising to 1.3120, the EUR/USD is closing flat on the day at 1.3060. The pair has been trading in consolidation mode after Monday's 270 pips collapse on the back of uncertainty outcome in the Italian elections. In addition, better-than-expected data in the US and Ben Bernanke comments on stimulus have fueled USD strengthening.
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Forex Flash: USD/CAD may take a breather; 1.0446 retest on the cards - TDS

According to Toronto-based Shaun Osborne, Chief FX Strategist at TDS, "the emergence of a “spinning top” candle signal in USD/CAD on the 6-hour chart, replicated on the daily chart below, cautions that the trend higher is susceptible to a modest pull back or consolidation at least."
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