EUR/USD retraces from 1.2860

FXstreet.com (Edinburgh) - The bull intent of the EUR/USD run out of steam in the area of 1.2860, retracing those initial gains to the current levels around 1.2840.

EUR/USD momentum faded

Market participants are now shifting their attention to President Draghi’s speech later in the European afternoon, although the broader focus remains on the FOMC minutes and Bernanke’s speech on Wednesday. “Overall, we expect the Fed tone to continue reinforcing a September tapering message, which should generally keep the USD supported despite some near term retracement potential”, commented G.Moore and S.Osborne, Strategists at TD Securities.

EUR/USD key levels

At the moment the pair is up 0.25% at 1.2844 with the next resistance at 1.2916 (high Jul.5) ahead of 1.2980 (MA10d) and finally 1.3000 (psychological level). On the flip side, a breakdown of 1.2806 (low Jul.5) would open the door to 1.2796 (low May.17) and then 1.2765 (weekly cloud base).

Session Recap: USD softer to start the week

The week started quietly in the FX market, with the USD only slightly weaker and major pairs consolidating within last week's ranges as investors continue to digest Friday's NFP report.
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GBP/USD hovering around 1.4900

The GBP/USD moved marginally higher during the European session, as markets started the week in a quiet tone.
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