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EUR/USD moves to 1.13, European stocks drop

FXStreet (Mumbai) - The EUR/USD quickly rose above the falling trendline resistance at 1.1265 to trade around 1.13 levels on signs of weakness in the European stock markets.

EUR ignored BOF GDP forecast

The common currency remains fixated on the sentiment in the stock markets. The major European stocks are trading in the red, despite the rally in the Chinese stock markets. The German DAX is now down more than 0.4%. Similar losses are seen in France’s CAC and London’s FTSE.

The pan-European blue chip Euro Stoxx 50 index now trades 0.50% lower. Moreover, the losses in the stock markets overshadowed the Bank of France’s (BOF) downward revision of the French GDP forecast. Ahead in the day, the ECB accounts and Fed minutes could influence the pair.

EUR/USD Technical Levels

At 1.1304, the pair is facing immediate resistance at 1.1318 (Oct 2 high), above which the spot could target 1.1373 (Sep 14 high) and 1.14 levels. On the downside, failure to sustain above 1.1265 (falling trendline support on the daily chart) could push the spot back to 1.12-1.1190 (50-DMA), under which major support is seen at 1.1149 (200-DMA).

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