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EUR/USD eases to 1.1230

FXStreet (Edinburgh) - After hitting highs in the vicinity of 1.1250, EUR/USD is now slightly deflating to the 1.1235/30 band.

EUR/USD bolstered by IFO

The current weakness surrounding the greenback is backing today’s recovery in the pair, which bounced off the 1.1100 area following the results from the Greek elections. The EUR also found extra oxygen in the better-than-expected IFO indicator in Germany for the current month, improving in all of its series and extending the upbeat momemtum in the indicator. Next on tap in the pair will be the Dallas Fed Manufacturing Business index during January.

After the ECB announcement last week, Strategist Rich Kelly at TD Securities, commented, “what is crucial is that the ECB has moved further along the spectrum to doing whatever it takes to hit their target. That means euro lower until further notice”.

EUR/USD key levels

At the moment the pair is advancing 0.20% at 1.1230 and a breakout of 1.1288 (high Jan.23) would expose 1.1376 (high Jan.23) and then 1.1472 (Tenkan Sen). On the downside, the next support lines up at 1.1098 (hourly low Jan.26) followed by 1.1047 (low Sep.8 2003) and then 1.1000 (psychological level).

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