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EURUSD hit hard: Time for a correction?

EURUSD struggling to find the upside momentum as the US Dollar remains strong. The currency pair fell to a 16 -month low against the US dollar on Monday.

EURUSD hit hard: Time for a correction?

Following a broad slump on Monday, the EURUSD struggling to find the upside momentum as the US Dollar remains strong. The currency pair fell to a 16 -month low against the US dollar on Monday following the dovish comments from ECB policymakers and President Christine Lagarde.

"At a time when purchasing power is already being squeezed by higher energy and fuel bills, an undue tightening of financing conditions is not desirable, and would represent an unwarranted headwind for the recovery," ECB President Christine Lagarde said on Monday.

Today so far, EURUSD has rebounded slightly as the EURO attempts to recover from the previous session plunge, but the pair’s gains have been limited. At the time of writing, the currency pair trades below 1.1380

Moving ahead, the main attraction for EURO this week, the Eurozone inflation figures on Wednesday. In today’s session, the currency pair will be reacting to the scheduled release of the Eurozone GDP and US retail sales data.

EURUSD Technical Analysis

Technically the overall sentiment remains bearish. However, a fresh demand for EURUSD can be anticipated once the pair rises above the 1.1430 resistance. In this case, the pair could re-test hourly 200-SMA located near 1.1510/15 level. On the other hand, the next immediate support prevails at 1.1350, further breakout of 1.1350 can lead the pair towards 1.1310/00 levels.

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