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EUR/USD: losses capped by weak European stocks

FXStreet (Mumbai) - The weakness in the EUR/USD pair is being restricted around 1.0620 levels amid losses in the stock markets across Europe.

Trades around Friday’s low

The slow march lower from the daily high 1.0646 levels appears to have stalled just above the Friday’s low at 1.0616 levels. The shared currency and the European stock paid little attention to the upbeat Eurozone and German preliminary PMI figures.

However, the losses in the stocks due to weak mining shares appear to cap losses in the pair around Friday’s low. It remains to be seen if the pair manages to sustain above the same or heads lower ahead of the Fed’s decision on the discount rates.

EUR/USD Technical Levels

The immediate resistance is seen at 1.0669 (hourly 100-MA), above which the gains could be extended to 1.0702 (hourly 200-MA). On the lower side, 1.06 could offer support, followed by a support at 1.0520 (Apr 13 low) and 1.0463 (Mar 13 low).

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