EUR/USD back below 1.3200

Fxstreet.com (Edinburgh) - Selling interest is now dragging the EUR/USD back below 1.3200 the figure on Monday, correcting lower after hitting fresh 5-week highs.

EUR/USD propelled by US data

Worrisome data from the US housing sector and a disappointing regional print from the Chicago Fed index boosted the pair to the vicinity of 1.3220, levels last seen in late June. “The euro remains in the middle of its six month 1.28-1.34 range against
the dollar… For the euro to break out of its current range in the next couple of months, we will need to see the Fed announce it will start tapering its asset purchases or for the ECB to take further easing measures”, assessed Mansoor Mohi-uddin, Director of FX Strategy at UBS.

EUR/USD critical levels

The pair is now up 0.38% at 1.3189 facing the next resistance at 1.3255 (high Jun.21) ahead of 1.3261 (76.4% of 1.3417-1.2755) and then 1.3302 (high Jun.20). On the downside, a break below 1.3315 (low Jul.22) would open the door to 1.3093 (cloud base) and finally 1.3089 (low Jul.19).

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