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EUR/USD rebounds after Greek deal

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• EUR/USD rebounded strongly from marginally above the key support hurdle of 1.1260 (S1) on Friday after Eurogroup agreed to extend Greece’s bailout program by four months. Nevertheless, the pair continues to oscillate between the aforementioned support and the resistance of 1.1540 (R2), thus I would maintain my “wait and see” approach as far as the short-term horizon is concerned. With regards to the broader trend I believe that the pair is still in a downtrend. EURUSD is printing lower peaks and lower troughs below both the 50- and the 200-day moving averages. A clear dip below 1.1260 (S1) is the move that would shift the bias back to the downside, I believe. Such a break could probably pull the trigger for another test of 1.1100 (S2), defined by the low of the 26th of January.

• Support: 1.1260 (S1), 1.1100 (S2), 1.1025 (S3)

• Resistance: 1.1450 (R1), 1.1540 (R2), 1.1650 (R3)

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