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EUR/USD drifts towards key support level
EUR/USD has been pulling back since posting a deep retracement late last week. That lower high would be confirmed as a bearish shift, with a break and hourly close below $1.2364.
Bearing in mind the wider uptrend for the pair, any further downside would only be seen as a retracement of the $1.2165-$1.2538 rally, with $1.2165 needed to be taken out to negate the wider bullish view. However, for the short term, the ability to break below the $1.2165 level will be the main determinant of whether we see a deeper retracement or not.