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EUR/USD Analysis: Weakens After Surge Last Week

The Euro’s movement during the previous session reveals the strengthening of the bearish sentiment. After reaching a daily high of 1.2305 early on Wednesday, the pair managed to breach the 55– and 100-hour SMAs and the monthly R2.

As apparent on the chart, the Euro has formed a minor descending channel. In line with this pattern, the rate should edge higher towards 1.2240. Given that this area is reinforced by the aforementioned lines, a breakout might not occur. On the other hand, the southern barrier is set by the weekly PP, monthly R1 and the 200-hour SMA. This cluster is also likely to hold strong, thus stranding the rate in the 1.2230/15 area for the whole session.

Dukascopy Swiss FX Group
Dukascopy Swiss FX Grouphttp://www.dukascopy.com/
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.

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