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EUR/USD: bulls under pressure despite monir recovery

FXStreet (Guatemala) - EUR/USD is currently trading at 1.1324 with a high of 1.1379 and a low of 1.1305.

EUR/USD is stable after the comments from Noyer that hit the wires earlier. The major has been attempting a minor recovery from the depths of the 1.13 handle after a reasonable spell climbing up to the 1.1480 level where supply came in bears took back control and punished longs down to below the 200 SMA at 1.1356 currently. The 20 SMA is in fact now trading below this level at 1.1346 signaling a potential continuation of the downtrend near term.

This week is a big one for the Euro. The ECB will meet on Thursday and it might be expected to indicate that further easing is necessary and on the way, crushing hopes of the 1.15 handle that October might have otherwise had in store for the longs out there. On the other hand, we were starting to see a Fed hike discounted from the price and such speculation should keep the greenback on the back-foot also while China continues to weigh on risk sentiment and has been known to back the euro on short covering in risk-off environments.

EUR/USD level

Technically, EUR/USD is in a bearish cycle having failed last week at the 1.1440/72 band (May, June and September highs, the 55 week ma and the 2014-2015 downtrend). The 1.1260/51 cloud lows is now open for a testing and the September lows at 1.1105/1.1088 could come under pressure.

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