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EUR/USD finds support at 1.0665

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EURUSD continued sliding on Tuesday and during the early European morning it is trading near 1.0665 (S1). The short-term bias remains to the downside and I would expect the rate to continue lower and challenge the next support obstacle at 1.0565 (S2) defined by the 7th of April 2003 low. However, bearing in mind that there is positive divergence between the RSI and the price action, I would be careful that a minor corrective bounce may occur before the next leg down. 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.

• Support: 1.0665 (S1), 1.0565 (S2), 1.0500 (S3).

• Resistance: 1.0800 (R1), 1.0915 (R2), 1.1000 (R3).

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