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EUR/USD Extends Recovery But Needs to Clear Away From $1.1850

EUR
MNI (London)
  • USD remains on the back foot, allows EUR/USD to further extend its recovery, moving through recent highs of $1.1867/69 to $1.1876.
  • USD/JPY same time has ground its way down to Y104.24, whilst GBP/USD has edged back toward its earlier high of $1.3233.
  • Traders have noted that the $1.1850 level holds the strike of E2.1bln of EUR calls for today's NY cut and this interest has been acting to anchor the rate close by, despite the underlying buoyant tone.
  • If rate can clear higher expected to meet next resistance on approach to $1.1900 ahead of recent high at $1.1920(Nov9).
  • MNI Techs sees this latter level as a trigger point for further gains.
  • Of note, the 78.6% retrace level of the move down from $1.2011(2020 high, Sep1) to the Nov low of $1.1603.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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