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Forex: EUR/USD supported by 1.3370, rises after EMU confidence

After being unable to reach the 1.3400 handle after US housing data, the EUR/USD eased back to 1.3370, where it found support against further downside. The release of EMU consumer confidence is allowing the pair to do another try to the upside.

The preliminary release of February consumer confidence was expected to improve slightly from -23.9 to -23.1 in the Eurozone. Actual data came in less attractive as it improved only to -23.6.

US housing building permits rose to 0.925M (more than expected), but housing starts declined to 0.890M (less than expected) in January. US PPI rose from 1.3% to 1.4% (YoY), despite rising less than expected on the month (+0.2% instead of +0.3%).

“The EUR/USD currency pair is trying to start an ascending wave. An alternative scenario implies that the price may continue moving upwards and reach the level of 1.3475”, wrote Roboforex.com analyst Igor Sayadov, expecting the pair to fall down to break the level of 1.3330 from above and then continue moving towards the target at 1.3240. “Only after reaching this target, this correction may be considered finished”, he added.

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