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EUR/USD reaches new session highs in Tokyo

FXStreet (Bali) - The US Dollar ha come under renewed selling pressure in early Tokyo, with the EUR/USD rate last exchanging hands at 1.0740 session highs, extending the rebound seen in early US hours, when a new low of 1.0675 was reached.

EUR/USD: Sellers well in control

Valeria Bednarik, Chief Analyst at FXStreet, shares her take on Tuesday's EUR/UUSD price action, noting: "There were no relevant macroeconomic news to guide investors, but the conviction over an upcoming US rate hike next December prevailed, even despite US treasury secretary Lew expressing concerns over international woes affecting the US economy."

Traders should be reminded that while in Europe will be business as usual, the US has a bank holiday this Wednesday, which should see activity/volatility decrease.

EUR/USD: Technicals

Technically, Valeria reiterates on her daily US close report, that "the bearish potential is firm in place, with no signs of a change in the long term bias, based on the clear imbalance between both economies' monetary policies." By scanning through the 4 hour chart, Valeria identifies "the 20 SMA extended further south, now around 1.0775, while the RSI indicator is barely bouncing from oversold readings and the Momentum indicator aims higher below its 100 level, suggesting an upward corrective movement may be under way."

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