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EUR/USD quicksand hardens; 1.3550 consolidation attempt

FXstreet.com (Chicago) - EUR/USD extends gradual climb after falling below the 1.36 zone and breaking the upward trendline on disappointing European data and hope sparks in the US. Down 0.47% for the day, the pair remains positive for the week at 0.24%.

Data recap

Earlier European data was worse than expected with the PPI in Germany at -0.1% vs. expected 0.1% and the PPI for the Euro-zone at -0.8% vs. expected -0.6% and past 0% results. On House Speaker comments and Fed’s members’ comments, it was clear the US remains divided. The DAX closed up 0.29% similarly to the CAC20 up 0.88% and the Euronext stronger 0.63%.

EUR/USD Technical Levels

Technically speaking, the pair broke the upward trendline that started last September 6th after plunging from 1.3632 session highs. Offered at 1.3553, the pair oscillates between supports aligned at 1.3461 (September 24th lows), 1.34 (August 17th highs) followed by 1.3322 (September 17th lows) and the resistances set at 1.3564 (September 28th highs), 1.3631 (October 3rd highs) ahead of 1.3716 (January 29th highs). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis below the EMA20.

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