Forex: EUR/USD bounces to 1.2940

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FXstreet.com (Barcelona) - The EUR/USD is now bouncing from the massive euro selloff on the ECB's Draghi, from 1.2907 low to 1.2940 at the moment of writing, still edging lower on the day by -0.26% ( GMT ). The market will be eyeing the Merkel-Samaras meeting in Athens and looking for headlines.

The CPI inflation report (YoY) in Greece eased from +1.7% to +0.9% in September, while the harmonized data softened from +1.2% to +0.3% (consensus of +0.9%). The Public Deficit/GDP ratio in Italy dropped from 8.0% to 2.8% in Q3.

Despite yesterday's softening, Commerzbank analysts are unable to rule out a re-challenge of the 1.3173/77 band (recent high and the Fibonacci retracement/78.6% retracement of the move seen this year), but favor failure there. "Immediate support is offered by the 6 week uptrend at 1.2905, this guards the 2 month uptrend and 200 day ma at 1.2824/1.2738 - risk has shifted to the topside very near term however we expect it to remain fairly tepid", wrote analyst Karen Jones.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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