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EUR/USD remains capped by 1.0700

FXStreet (Córdoba) - The comeback of the EUR/USD faltered ahead of the 1.0700 level, putting the pair on a consolidative phase near 7-month lows as investors await the FOMC meeting minutes release.

EUR/USD managed to recover some ground after hitting its lowest level since mid-April at 1.0630, but the advanced lacked momentum as the dollar remains favored amid growing expectations the Fed will raise rates in December.

Ahead of the minutes, Fed’s member Lacker, the only dissenter on the FOMC, was speaking on CNBC. He said that improvement seen in the US labor market has been substantial adding that the probability that the Fed will get behind the curve is increasing.

However, the dollar barely reacted to Lacker’s comments or a series of soft US housing data, and EUR/USD continued to trade around 1.0660, still up 0.19% on the day.

EUR/USD levels to watch

In terms of technical levels, immediate supports are seen at 1.0630 (Nov 17 & 18 lows), 1.0570 (Apr 15 low) and 1.0520 (Apr 13 low). On the other hand, next resistances could be faced at 1.0692 (Nov 18 high), 1.0739 (10-day SMA),1.0757 (Nov 16 high) and then 1.0829 (Nov 12 high).

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