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No Reprieve From Lower Gas Prices

EUR

EUR fails to draw support from the downtick in regional gas prices as worries re: an Australia supply outage recede.

  • Instead, participants look to yield differentials, with a rally in Bunds outpacing a bid in their U.S. Tsy equivalents early today (ironically, likely aided by the same gas price developments).
  • EUR/USD has nudged away from best levels to last trade little changed on the day, just below $1.0860.
  • Technically, the trend needle in EUR/USD continues to point south and Wednesday's move lower reinforces the current bearish condition. Price continues to weaken inside a bull channel drawn from the Mar 15 low. The base lies at $1.0767 and represents the next objective and a key support. Initial firm resistance is seen at $1.0933, the 20-day EMA.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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