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EUR/USD regains 1.1200 and beyond

FXStreet (Edinburgh) - The shared currency is staging a bounce off recent lows, pushing EUR/USD through the 1.1200 barrier and into the 1.1240 area.

EUR/USD supported near 1.1100

The selling interest around the EUR is far from over, it is just taking a breather. However, after bottoming out in the vicinity of 1.1100 the figure earlier on, spot managed to recover some of the ground lost and advanced above the 1.1200 handle. Previously, the manufacturing and services sector in the euro area posted auspicious results via the PMIs in January, although they were somehow bypassed by traders, as focus remains in the ECB.

Analysts at Bank of America Merrill Lynch argued “We still see a gradual weakening of the Euro, as Fed and ECB monetary policies diverge. After this week’s ECB policy announcements, we do not expect any aggressive further steps for the rest of the year”.

EUR/USD key levels

At the moment the pair is losing 1.24% at 1.1220 with the next support at 1.1115 (2015 low Jan.23) followed by 1.1100 (psychological level) and then 1.1047 (low Sep.8 2003). On the flip side, a breakout of 1.1247 (hourly high Jan.23) would expose 1.1291 (hourly high Jan.23) and then 1.1376 (high Jan.23).

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