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EUR/USD Firm Into Europe, $1.2149/56 Next Upside Hurdle

EUR
MNI (London)
  • EUR/USD touched an extended corrective pullback low of $1.2082 in early NY Friday, off of Thursday's high of $1.2149, only to bounce back to $1.2129 through the 1600GMT fix, closing the week around $1.2120.
  • US equities and oil pushed higher as reflation trades again emerged placing the USD under pressure into the weekend.
  • Holidays in Asia (Lunar New Year) and Presidents' Day in the US Monday made for thin conditions during early Asian trade with EUR/USD initially consolidating around $1.2120.
  • Fresh pressure on the USD emerged into Asia midday, edged EUR/USD to $1.2141with rate holding these gains into Europe.
  • Resistance seen around $1.2150($1.2149/51/56 Feb11 high/50% 1.2349-1.1952/Jan29 high), a break to expose late January highs between $1.2170-83 with stronger interest seen into $1.2100($1.2097 61.8%)
  • Support $1.2120/10 ahead of $1.2080.
  • EZ Trade and IP data at 1000GMT. Eurogroup meeting at 1400GMT, ECB Lagarde to attend.
  • US and Canada closed. US NYSE, Nasdaq and CME closed.
  • MNI Techs: EURUSD continues to consolidate and is trading at recent highs. A bullish theme remains intact. The Feb 5 price pattern, a bullish engulfing reversal is still in play, reinforcing current conditions. Furthermore, last week's move above both the 50- and 20-day EMAs is positive. Focus on $1.2156 next, Jan 29 high On the downside, sub 1.1952 levels would resume recent bearish pressure.
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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