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EUR Grinding Higher On Softer Greenback

EURO SUMMARY
  • EUR/USD (+0.92%) continues to trade with an upward bias on Monday, underpinned by the broad greenback weakness and the pair has extended last week’s recovery from 1.0525, the Mar 8 low.
  • Resistance at 1.0694 has been cleared, the Mar 6 / 7 high, which has prompted a narrowing of the gap between the next resistance point of 1.0779, a Fibonacci retracement. Gains, however, are considered technically corrective - for now. 1.0803, the Feb 14 high remains key resistance for the pair.
  • Support to watch moves up to today’s intraday low of 1.0640 where a break is required to signal a top. This would refocus attention on 1.0525, the bear trigger.
  • Just Italian industrial production data due on Tuesday before the key US inflation release. Global markets will inevitably continue to be driven by risk sentiment related to regional bank contagion fears, with Thursday’s ECB decision/press conference then due Thursday.

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