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EUR/USD holding its ground around 1.0700 today

The fall in the dollar has allowed the Euro to rebound and yesterday, as noted, that rebound saw it reach its first technical objective, at 1.0709. As mentioned here a few times already that level represents a 38.2% correction of the 1.0885-1.0601 fall. The high seen since yesterday has been set a little earlier today, at 1.0714. The EUR/USD closed last night at 1.0701. So, it is the combination of better European data and weaker US data that has helped the Euro recover, but in truth that recovery is not exactly dynamic and the overhang of the macro outlook is still a major headwind. The prospect of the ECB cutting rates well ahead of the Fed (if they do) is a major part of that dynamic. Even so, the current news flow is suggestive of perhaps more short-term upside of the Euro and if that is the case, then the next level of note from here would be the 50% correction of that noted fall. That implies a next potential resistance level at 1.0743. It is also worth noting this morning; that the 21 day moving average is close by that level too, at 1.0740 just now. The EUR/USD is currently trading at 1.0703 
 

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