EUR/USD: Ranging above 1.2960

by Admin

The EUR/USD stands in a quiet range this Monday as market needs to digest the latest developments across the world. Negative US figures past Friday for once triggered a dollar selloff, helping the pair settle above the 23.6% retracement of the 1.3710/1.2744 daily fall. But things are not going well in the EU, with Portugal now gathering attention as the constitutional court  decided to reject cuts of €1B. 10Y bonds are higher today, up to 6.57% as immediate market reaction to the news. Still, seems investors are not yet concerned on this matter. 

As for what technical says the pair holds above 1.2960, with indicators maintaining a bullish tone after correcting some of their overbought conditions, all of which suggest further gains are still on the table: a break above 1.3040 immediate resistance should anticipate a continuation rally towards 1.3110, 38.2% retracement of the same rally. On the other hand, renewed selling interest below 1.2950/60 area should open the downside towards key 1.2880/1.2900 price zone.

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