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1 Mar 2013
Forex: EUR/USD testing January lows, around 1.3020/25
The bloc currency continues its relentless march south on Friday, hovering over the area of 1.3020/25, levels last seen in early January, as momentum in the risk-off tone is mounting.
“The Sequester in the US kicks in and even though there still remain some negative near-term risk factors for EUR/USD, we think that the main part of the correction should be behind us now and we still look for EUR/USD to move higher in three to six months’ time”, suggested Chief Economist at Danske Bank, Jens P. Sorensen.
At the moment, the pair is down 0.27% at 1.3021 with the next support lying at 1.2998 (2013 low Jan.4) ahead of 1.2996 (low Dec.12) and then 1.2929 (low Dec.11).
On the flip side, a surpass of 1.3100 (psychological level) would bring 1,3163 (high Feb.28) and finally 1.3200 (psychological level).