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EUR/USD inching higher around 1.3220

FXstreet.com (Edinburgh) -There is not much going on in the euro zone during this morning so far, with market participants slowly digesting yesterday’s events and the EUR/USD gyrating around 1.3220.

EUR/USD supported by 1.3200

Despite briefly piercing the critical support at 1.3200 on Thursday, the pair closed above it, keeping the bullish stance for some analysts and pointing to a congestion pattern for others. In the aftermath of the ECB meeting, Strategist Kit Juckes at Societe Generale commented “The ECB seems likely to ease further despite the economy moving from recession to stagnation. Another rate cut, possibly even another LTRO, will be unleashed. The ECB will continue its stout defence of peripheral bond markets, though we will have to absorb the latest Italian political uncertainty”.

EUR/USD relevant levels

As of writing the pair is up 0.08% at 1.3219 facing the next hurdle at 1.3311 (high Aug.1) ahead of 1.3345 (high Jul.31) and then 1.3417 (high Jun.19). On the downside, a break below 1.3192 (low Aug.1) would target 1.3166 (low Jul.25) en route to 1.3164 (low Jul.23).

EUR/GBP reading overbought RSI

EUR/GBP has seen lots of movement since Wednesday from the highs around 0.8770 to the lows Thursday around 0.8680 to currently trade 0.8730, above key 0.8710 resistance with RSI printing above 70.
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