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EUR/USD it’s alive! Back to 1.3250

FXstreet.com (Edinburgh) -It seems the shared currency found some bids around 1.3230 on Monday, lifting the EUR/USD to the mid 1.3200s in a context dominated by the risk aversion.

EUR/USD keeps the 1.3200-1.3300 range

Despite today’s correction lower, the key support at 1.3200 continues to hold the pullbacks while the key barrier at 1.3300 caps the upside attempts. According the last CFTC COT report, Strategist Christian Lawrence at Rabobank commented, “The level of EUR shorts dropped heavily. Evidence that the economic recovery could be in sight is providing the unit with support… USD longs declined but remain above their late June/early July levels. The disappointing July US labour report suggests the USD could remain on the back foot this week”.

EUR/USD critical levels

At the moment the pair is down 0.23% at 1.3251 and a violation of 1.3200 (psychological level) would target 1.3188 (low Aug.2) en route to 1.3166 (low Jul.25). On the upside, resistance levels align at 1.3311 (high Aug.1) followed by 1.3345 (high Jul.31) and then 1.3417 (high Jun.19).

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