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EUR/USD downside deeply entrenched

FXStreet (Guatemala) - EUR/USD is trading at 1.2422, up 0.01% on the day, having posted a daily high at 1.2431 and low at 1.2419.

EUR/USD has found a base on 1.2420 after a sharp drop that closed the bullish gap when the pair had been up to test waters in the 1.25 handle. This was short lived and the greenback is now taking back control after a lose start to the week.

The broader side f the pair remains deeply entrenched and powerfully bearish. However, allowing for some room for slack, a test of trend/40-day MA resistance at 1.2670 might be on the cards in the next week or so (above 1.25) according to analysts at TD Securities, but much higher than that seems unlikely absent a stronger sense that the bear trend is losing broader momentum.

EUR/USD noteworthy levels

Spot is presently trading at 1.2423, and next resistance can be seen at 1.2427 (Daily Classic PP), 1.2448 (Hourly 20 EMA), 1.2463 (Weekly Classic PP), 1.2468 (Hourly 100 SMA), 1.2485 and 1.2520. Next support to the downside can be found at 1.2422 (Daily Open), 1.2400, 1.2384 (Daily Classic S1) and 1.2375 and 1.2330.

Japan BoP, Sweden CPI, Riksbank Minutes - RBS

RBS FX Strategists break down the most relevant events for Tuesday, a relatively quiet day due to public holidays in varies international financial centers, including the US, which celebrates 'Veterans Day'.
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