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EUR/USD hits support near 1.1260

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EUR/USD moved somewhat lower on Monday, hit support fractionally close to the 1.1260 (S1) support line, and rebounded to trade virtually unchanged. The rate has been trading between the aforementioned support line and the resistance obstacle since the 27th of January and therefore I would consider the near-term path of EURUSD to be neutral. As far as the broader trend is concerned, the price structure still suggests a longer-term downtrend. EURUSD is printing lower peaks and lower troughs below both the 50- and the 200-day moving averages. I still consider the recovery from 1.1100 (S2) as a corrective phase and I would expect the bears to eventually take control again.

• Support: 1.1260 (S1), 1.1100 (S2), 1.1020 (S3).

• Resistance: 1.1540 (R1), 1.1650 (R2), 1.1730 (R3).

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