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EUR/USD weakening below 1.3150

FXstreet.com (Barcelona) - The EUR/USD foreign exchange rate is last trading at 1.3142 off recent session lows at 1.3135, printed on the back of broad USD strength, following a mild risk aversion move in the Asia-Pacific.

EUR/USD higher as traders cut on long dollar positions

According to FX Charts analyst Jim Langlands, “The Euro has closed at the higher end of the day’s range, currently  up against Fibo resistance (61.8% of 1.3415/1.2762) as traders  continue to cut out long dollar positions. Technically, as we wrote yesterday, the dollar remains under pressure ahead of Bernanke and this looks likely to continue, despite the fact that it must be pretty much written in to the price that he will remain dovish on his outlook.”

EUR/USD key technical levels

Immediate support to the downside for EUR/USD lies at recent session lows 1.3135, followed by Thursday's late NY session highs at 1.3122, and Friday's NY session highs at 1.3088. To the upside, closest resistance shows at recent NY session weekly highs 1.3175, followed by Thursday's highs at 1.3209, and June 21 highs at 1.3255.

USD/JPY scenarios ahead of Bernanke

Deducing the next directional move in the USD/JPY is a tricky one, amid big players on the western hemisphere going on 'summer holidays' - more choppiness - while more short term, the Bernanke testimony keeps the pair vulnerable to his tone.
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