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EUR/USD consolidates around key support level
EUR/USD has been largely consolidating in early trade, with $1.2213 support being respected on a number of occasions. With that level representing both the neckline of a head and shoulders formation, alongside the 61.8% retracement, a break lower could see short-term downside.
However, with the wider trend pointing towards a resurgence for the pair, only a fall back below $1.2165 would bring a more bearish outlook. Until then, this recent sell-off looks like a retracement, with a break higher expected before long. Watch for an hourly close above $1.2257 for greater confidence that we are set to break higher from here.