Forex: EUR/USD under 100 DMA

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FXstreet.com (Buenos Aires) - EUR/USD Current price: 1.2768. Euro starts the week as it closed past Friday, showing a soft tone, after breaking under the 100 DMA, currently around 1.2805 and immediate resistance level for the cross. Fears of a global slowdown and a double dip in the US had favored both dollar and yen, that hold their bullish tone across the board, in what seems will be a quiet Asian session.

Technically and according to the hourly chart, pair aims for a bullish short lived movement, as momentum remains strongly down while price is capped under 20 SMA. Bigger time frames show rally overextended to the downside yet not other signs of exhaustion. "Key support now lies at the 1.2720/30 area, as under this last, the bearish momentum could extend further this week," said Valeria Bednarik, collaborator at FXstreet.com.

Support levels: 1.2720 1.2680 1.2620. Resistance levels: 1.2805 1.2830 1.2860.

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.

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