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Once again, the $1.3700 level has proven to be very supportive for EUR/USD. As the pair moves higher for the second day in a row, the 50-day moving average becomes the next hurdle to clear before it again attempts to break above $1.3800 – a task that was too much for it last week. We are now just over 24 hours away from the release of the minutes from the last FOMC meeting, and the nuances from that will be analysed extensively.
As time has dragged on, the issue of Crimea has attracted fewer and fewer headlines. However the latest developments, with unrest in Donetsk and the increasing threat of disruption from Russian sympathisers, mean that this issue may once again be drawn back to the forefront of traders’ minds.
Looking at the price action, the relative strength indictor is still mid-range and far from overbought. The currency looks to be ranging between $1.37 & $1.38, and is still on an upward trajectory. Only a close below the $1.37 level would lead to a reassessment.