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Positive Risk Extends EUR/USD Rise.

EURO-DOLLAR
MNI (London)
  • Risk-on given an added lift in Asia as market reacted to remarks from House speaker Polosi that she was hopeful that a fiscal stimulus deal could be reached ahead of the election.
  • Reported counter comments from Mitch McConnell, privately warning the White House not to strike a pre election deal, only slightly dampened the positive risk feel.
  • EUR/USD touch a high Tuesday of $1.1841, finding support at $1.1820 in post fix trade.
  • Asia took rate through Tuesday's high and on to $1.1850 where it seems to be meeting mild headwinds into Europe.
  • Break exposes $1.1870/80 ahead of $1.1900. Support remains at $1.1820 ahead of $1.1800/1.1795.
  • A light domestic data calendar in EZ.
  • Focus on US fiscal negotiation developments.
  • MNI Techs: EURUSD maintains this week's positive tone. yesterday breached the bull trigger at 1.1831, Oct 9 high. Scope for an extension towards 1.1859 initially and 1.1917 further out, both Fibonacci retracement levels. The major resistance and hurdle for bulls is at 1.2011, Sep 1 high. Initial firm support lies at 1.1760, yesterday's low.
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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