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EUR/USD is half past dead ahead of ECB

FXStreet (Moscow) - EUR/USD has stopped dead a couple of pips below 1.3600 resistance, waiting for a potentially life-changing ECB decision

Fundamentals are the key

EUR/USD is down on weekly basis, but things can change in a twinkling of an eye once Draghi and Co announce their monetary policy decision. The pair has spend the first half of the week in a tight range limited by the low of the previous week at 1.3585 and 1.3645/50 resistance. And the chances are that the long-waited breakout will happen today. No need to mention that Germany factory orders as well as EZ retail sales numbers will be left unnoticed as markets are fixated on ECB. Though from the longer-term perspective these reports are important in terms of better understanding the current state of the European economy. The retail sales are expected to grow by 1.3% in April after a feeble growth of 0.9% in March, which is consistent with the idea of slow but steady recovery.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3612, with support below at 1.3594, 1.369 and 1.3541, with resistance above at 1.3627, 1.3655, and 1.3670. Hourly Moving Averages are mostly bearish, with the 200SMA at 1.3619 and the daily 20EMA at 1.3695. Hourly RSI is bearish at 40.

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