EUR/USD recovery falters, retraces gains

FXStreet (Córdoba) - The recovery of EUR/USD stalled once again at the 1.2840 zone Friday, sending the pair back to the 1.2800 mark in recent dealings.

EUR/USD staged a decent comeback during the European trade helped by stocks rebound and easing pressure on peripheral bonds. But the shared currency remains vulnerable amid fears of a possible return to recession in the Eurozone and low inflation. Meanwhile, Nowotny and Weidmann provided some drive but it was limited.

At time of writing, EUR/USD is trading at 1.2810, little changed on the day but on track to post its second weekly gain in a row, although off 1.2882 high scored Wednesday on the back of disappointing US data.

EUR/USD technical levels

As for technical levels, if EUR/USD recovers beyond the 1.2840/45 area, next resistances are seen at 1.2882 (Oct 15 high) and 1.2900 (psychological level). On the flip side, supports could be seen at 1.2780 (intraday low), 1.2704/00 (Oct 16 low/psychological level) and 1.2623 (Oct 15 low).

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