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EURUSD pauses downside momentum, remains in 1.12 handle

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EUR/USD paused its downward momentum to find support just above the 61.8% Fibonacci retracement level at 1.1210 (of the up leg from the all-time low of 0.8225 to the all-time high of 1.6038).

The pair has moved off 11-year lows of 1.1096 hit on Monday and has since been consolidating just above the 61.8% Fib at 1.1210. The daily RSI is oversold which suggests some pause in the downside. The break of this Fib level sees scope to target the 78.6% Fibonacci at 0.9904.

Gains are limited with only 1.1294 hit so far. This will act as immediate resistance although the major barrier will be at 1.1650.

The long term outlook remains bearish as the market is below the daily Ichimoku cloud and the tenkan-sen and kijun-sen lines are falling.



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