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Euro/dollar has been on the back foot amid a gloomier mood. What’s next?

Here is their view, courtesy of eFXdata:

ING discusses EUR/USD technical outlook and  maintains a neutral bias on a multi-day basis.

“The short-term weakness continued with prices breaking below the flat MA-50 line at 1.1399 in the past few days. However, this weakness is not changing the consolidation pattern of the past few months with prices currently testing the upward sloping trend line around 1.1315 with the former upper end of the falling trend channel offering support around 1.1240,” ING notes.

The daily momentum chart is also still neutral, likely suggesting a continuation of the sideways price pattern. That said,  a short-term bottom should be close at hand followed by the next rally. A close above the flat MA-50 line, today at 1.1398, will confirm this scenario  with overhead resistance coming in between the horizontal line around 1.1530 and the declining EMA-200 line at 1.1544,” ING adds.

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