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EUR/USD: Week’s low in the 1.0656 region to offer support – Rabobank

In the month to date, the EUR has dropped 1.7% vs. the USD. Economists at Rabobank point out the key support level to watch.

EUR will be more sensitive to bad economic news than to good

“Given that the market had cut its long USD positions at the end of last year and into January, the risk of a higher peak for Fed funds is suggestive of the potential for further USD gains into the middle of the year.” 

“Given that the market is now positioned long of EURs, it will be more sensitive to bad economic news than to good.”

“Supports will be offered by the week’s low in the EUR/USD 1.0656 region. Below this, the year-to-date low at 1.0484 is likely to offer strong support.”

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FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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