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1.12 Becoming Increasingly........>

EURO-DOLLAR TECHS
EURO-DOLLAR TECHS: 1.12 Becoming Increasingly Pivotal
EURUSD broke below the 1.12 level yesterday hitting as low as 1.1192 before
recovering some losses. Again this morning EURUSD briefly touched below 1.12
immediately after the release of the weaker than expected German IFO data. As
the 1.12 level grows in significance, bears now look for a close below to target
the Mar 7 low & channel base support at 1.1177/50. Bulls need to initially
recover Monday's high of 1.1262 ahead of 1.13 before challenging the double-top
resistance area at 1.1324. A break would generate renewed upside momentum,
opening a move towards the 50% retracement level & 100-dma at 1.1342.

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