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The EUR/USD pair is in recovering ground in the European morning, as stocks opened higher following a bounce in commodity prices, particularly on precious metals. Overnight news helped investor's mood, as the RBA Minutes showed that the Australian Central Bank is in no rush to cut rates, keeping the dollar under pressure. 

Nevertheless, major pairs remain confined to limited ranges and the EUR/USD trades a handful of pips above its Friday's close. Macroeconomic data from Europe was far from encouraging, as the EU Current Account surplus for Augusts shrunk to €17.7B, whilst July data was revised higher, from €22.6B to €25.6B. Even worse, German producer prices index in September fell by 2.1% yearly basis, compared to the previous -1.7%. 

Later on, the US will release some housing data, whilst Yellen, Dudley and Powel from the FED will offer different speeches along the day. 

View the Live chart of the EUR/USD

Technically, the 4 hours chart shows that the price is being limited by a strongly bearish 20 SMA, whilst the technical indicators continue recovering from near oversold levels, but remain below their mid-lines. There is an immediate short term resistance around 1.1370, although the price needs to extend beyond 1.1400 to confirm additional gains, up to 1.1460 where selling interest remains strong. 

Renewed selling pressure below 1.1320 on the other hand, exposes the pair to a decline down to 1.1280 a strong static support level, which if broken, will likely see the bearish momentum accelerate, and the price run towards the 1.1240 price zone.

Latest updates on the EUR/USD Forecast
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