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Forex: EUR/USD inside its thin trading range 1.3572/96

EUR/USD is currently dealing with fresh session lows around the 1.3572, off recent session highs at 1.3596, same session highs seen in NY, inside this thin 1.3572/1.3596 band since late NY trade, with market already shifting focus to Thursday's ECB meeting, where rates are expected to remain unchanged. The pair is up by +0.49% since previous Asia-Pacific open yesterday, while it is still down by -0.55% for the week so far.

US 10 year bonds regained the 2% level, while European share markets bounced a bit from yesterday's massive sell-offs, with all local share markets now in Asia-Pacific showing green lights, Nikkei index almost a +3% higher, near April 2010 highs. Germany factory orders at 11:00 GMT will be most important risk event for the London session ahead, with not much on offer till next day's ECB and Ecofin. According to FXstreet.com Independent Analyst Ivan Delgado: “Clean break above 1.36 allows retest of 1.37. Break higher may have to wait until ECB's outcome later this week,” Ivan notes.

Immediate support to the downside for EUR/USD lies at recent session lows/London session highs 1.3572/68, followed by Jan 31 lows at 1.3539, and Jan 29 highs at 1.3496. To the upside, nearest term resistance shows at recent session/yesterday's highs 1.3596, followed by Monday's London session highs at 1.3636, and Friday's London session highs at 1.3674.

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