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Euro-Dollar Bounces Back in European Trade After Finding Support at 50-Day SMA
Monday, 13 July 2009 08:23:52 GMT  |  DailyFX Market Research
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EUR-USD recovered from the 1.3900 area amid reports of European account demand after an Asian central bank supported at the lows. The pair traded back in to 1.3950, which reinforces the range bound theme. The broad based pick up in risk reduction weighed over the course of the Asian afternoon, but like previous sessions the market lacked the momentum to seriously damage the Euro’s appeal. Reserve management demand has been a feature of this pair since the summer got underway and this should continue in the near-term. The market shrugged off concerns over Eastern Europe voiced by EBRD Mirow and a negative assessment on the ECB by the Telegraph's Ambrose Evans-Pritchard. However, he is not usually known for his optimism. EUR-USD should run in to offers towards 1.3980, which is ahead of today's 1.4000-10 option expiries. Further upward momentum may come from the crosses, with EUR-GBP benefiting from macro account demand and traded up to 0.8682, while EUR-JPY rebounded to 129.00 on bargain hunting after it hit 128.06 lows.

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