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USD/JPY rebound stumps EUR/USD

As noted here earlier, the rebound in the USD/JPY effectively stunted any further gains in the EUR/USD, after it had pushed just above the previous 2025 high reached last Friday. That was at 1.0521 and it seems there were a few stops in place above that level, when they forced the price action to a new 2025 high, at 1.0533. However, long before the US close, the Euro was falling back and later closed in the US at 1.0492. The price action since the US close has delivered a deeper fall and perhaps we should also not forget; the Fed is not the only major central Bank due to decide on monetary policy this week. On Thursday we have the same from the ECB and they are expected to lower rates again. So, if the Fed passes on Wednesday evening and the ECB cuts the very next day, that is not exactly supportive for the EUR/USD is it? So, anyway the EUR/USD has lost momentum since yesterday afternoon and a slide in the early Asian session saw it fall to 1.0425. It has not materially bounced from that low either. The much earlier Asian high was set at 1.0494. The earlier low just probed the 50 day moving average which is in place right now at 1.0427. The high seen yesterday also fell well short of the next, noted technical topside level at 1.0574. The EUR/USD is right now at 1.0437
 

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