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Forex: EUR/USD grinding lower, around 1.3560/65

The single currency is retracing yesterday’s gains in the area around 1.3570 on Wednesday, ahead of German Factory Orders due later. Prior surveys expect the headline to contract 1.2% in a year to December.

Extremely light docket in the euro area would like the market to the mercy of the risk trends, while market participants start to focus on tomorrow’s ECB gathering.

At the moment, the cross is losing 0.11% at 1.3567 with the next support at 1.3415 (low Jan.29) ahead of 1.3377 (MA21d) and then 1.3349 (low Jan.25).
On the upside, a breakout of 1.3574 would bring 1.3620 (intraday support Feb.4) ahead of 1.3660 (high Feb.4) and then 1.3664 (Upper Bollinger).

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