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Positive risk outlook fuelled EUR/USD's extended recovery to $1.1831 into Friday's close(close $1.1828). PBOC announcement over the weekend it will lower the reserve requirement for financial institutions when conducting some FX forwards effective today was seen applying brakes to recent CNY appreciation. The move saw USD marked higher into the Asian open, EUR/USD opening the day at $1.1812, marked a low at $1.1803 before it slowly edged higher through the rest of the session, meeting some resistance above 1.1820.Early Europe extended the recovery to $1.1827(closing the gap to the NY close) but early momentum quickly faded. A fairly light data calendar Monday with attention on ECB speakers. Schnabel (0945BST), Lagarde(1200BST-pre recorded IMF Gov talk), Guindos(1600BST) and Panetta(1745BST). Focus this week on the EU Summit Thu/Fri, discussion on Brexit and EU Recovery Fund/Budget. Support into $1.1800(55-dma, closed back above Friday))/1.1790, $1.1780, $1.1758. Resistance $1.1827/31(NY close, Asia high/Oct9 high), $1.1850/60.

MNI Techs: EURUSD traded higher Friday, pushing through resistance at 1.1808, Oct 6 high. The breach reinforces short-term bullish conditions following a period of consolidation and also confirms the clear break of trendline resistance drawn off the Sep 1 high. Price moved through the trendline on Oct 5. Further gains would open 1.1859 next, 61.8% retracement of the Sep 1 - 25 sell-off. 1.1725 marks the key near-term support.