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EUR/USD consolidating around 1.3000

Fxstreet.com (Edinburgh) - The EUR/USD seems to have found a new comfort zone around the psychological mark at 1.3000 on Wednesday, testing at the same time 4-week lows.

EUR/USD vs. 200-day moving average

Today’s steep decline quickly left behind the key level around 1.3070/80 - home of the 200-day moving average - attempting a bounce later after the revised Q1 GDP in the US economy disappointed investors. “Spot has broken below the 50, 100 and 200 day MA (1.3079, 1.3076 and 1.3073, respectively) and the 100-day and 200-day are on the verge of a cross. We expect further near-term EUR weakness”, suggested Camilla Sutton, Strategist at Scotiabank.

EUR/USD key levels

At the moment the pair is retreating 0.61% at 1.3000 and a breakdown of 1.2956 (low Jun.3) would open the door to 1.2944 (low May 31) and finally 1.2934 (low May 30). On the upside, resistance levels line up at 1.3087 (high Jun.26) ahead of 1.3151 (high Jun.25) and then 1.3161 (low Jun.20).

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