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Single Currency Fades Despite Initial Pop

EUR
  • EURUSD briefly prints 1.0747 highs on the ECB hike, falling just shy of the overnight highs before sharply falling back below the 1.0700 handle as “the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target.”
  • Overall, EURUSD conditions remain bearish and price has been in consolidation mode for now. This pause appears to be a bear flag formation, reinforcing bearish conditions. 1.0688, the September 7 low is the most immediate support point before 1.0635, the May 31 low and a key support.

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