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Forex: EUR/USD consolidates above 1.2800

FXstreet.com (Barcelona) - The single currency is retesting session highs around 1.2815/20 on Thursday. In the meantime, tensions surrounding Cyprus continue to allay as calm and cautiousness prevail after the banks reopening.

Regarding the likeliness of a rate cut by the ECB in next week’s gathering, analysts at brown Brothers Harriman commented, “Current weakness of the euro-area economy is not unexpected, so the bar for a rate cut is high. However, if, as we expected, the weakness is more prolonged, then that could lead to a cut. In addition, it might not be growth per se, but the risks of deflation that drives the decision”.

At the moment, EUR/USD is up 0.31% at 1.2818
Next hurdle aligns at 1.2867 (high Mar.27) followed by 1.2883 (MA200d) and finally 1.2890 (high Mar.26).
On the other hand, a breach of 1.2730 (low Nov.19) would open the door to 1.2685 (weekly cloud base) and then 1.2680 (61.8% of 1.2042-1.3711).

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