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  • Euro bulls remain intact despite dismal German data.
  • Buyers are looking to break above the sideways channel.
  • Fed’s meeting today can provide a fresh stimulus to the pair.

The EUR/USD analysis continued to strengthen its positions yesterday after forming a good signal to open long positions in the afternoon. The data released in the first half of the day on the indicator of conditions for the business environment in Germany did not meet the hopes of economists, which led to a sharp decline in the Euro. However, this fall was quickly bounced back and the bulls re-consolidated above the 1.1784 range.

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So far, the buyers are holding the strength are gradually pulling the pair to the highs of the last week, beyond the upper border of the sideways channel, in which the Euro is for the second week in a row.

Today, there are no important fundamental statistics in the first half of the day, so only the report on changes in the M3 aggregate of money supply and the volume of lending in the Eurozone will attract attention.  The data is unlikely to somehow affect the direction of the European currency, which leaves hope for EUR/USD buyers to break the resistance of 1.1816

In addition to the Federal Reserve decision today, we expect data on changes in the volume of US GDP for the second quarter this year at the end of the week, where growth is expected at once by 8.4%.  It could also provide bullish momentum to the US Dollar

EUR/USD technical analysis: Buyers looking to sustain

The EUR/USD pair is gradually rising beyond the 1.1800 mark. The pair managed to break above the descending trend channel and congestion of 20 and 50 period SMAs on the 4-hour chart.

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However, the price is now retreating towards 20-SMA on the 4-hour chart. Just ahead of the European session, the pair has completed 39% ADR, 20 pips below the daily highs. The volume of the recent downside wave is declining. It means bears are losing respite for now.

EUR/USD 4-hour chart analysis
EUR/USD 4-hour chart analysis

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