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EUR/USD limited below 1.34; cannot make up its mind

FXstreet.com (Chicago) - EUR/USD remains trending sideways after inability to resist bearish pressure. While bulls contemplate weaker-than-expected US data published earlier in the country, market participants remain unsure about where to place bets on emerging markets concerns and international conflict implications.

Ahead of German data in Europe due at 8:00 GMT and consumer confidence vote in the US for the month of August, the world eyes the resolution of the Syrian conflict and implications of possible American retaliation.

Price action reveals a strong resistance at 1.3389 as the pair has deflated from that level four times within the past six days. After reaching 1.3390 Asian session highs, the pair retraced and found grounds at 1.337 zone post Syrian knee jerk reactions triggered by Secretary of State John Kerry. Marking 0.03% daily gains, the pair trades at 1.3371 between supports at 1.3362 (August 16th highs), and 1.3329 (August 2nd lows) ahead of 1.3300 (July 30th highs). The upside marks resistances set at 1.3389 (August 10th highs), 1.3415 (August 22nd highs) and 1.3427 (August 20th highs). The FXstreet.com trend index reports the pair as strongly bullish on one-hour timeframe analysis with a neutral EMA20.

AUD/USD rolling back over after a brief bounce; 0.8938 remains the target

The AUD/USD reached a short-term Fibonacci projection at 0.8968 and bounced. However, it now appears to be rolling back over on the way down to the 0.8938 target.
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Flash: EUR/USD strength has expiry date - Saxo Bank

While talk continue about the euro strength being driven by previous positioning in long emerging market assets versus short euro trades, in view of John Hardy, Head of FX Strategy at Saxo Bank, "it could also be that the market wisdom is that US treasuries should be avoided due to the tapering threat, and that European bonds are a safer haven for capital flight from emerging markets since bond prices will remain better supported for now."
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