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Forex: EUR/USD upside capped around 1.3180

FXstreet.com (Barcelona) - The bull run that lifted the cross to the vicinity of 1.3180 on Tuesday is running out of steam, sparking a correction lower to the current area of 1.3165/70.

“The EURUSD level may be fine for Germany, but is obviously too high in the periphery given the rapid drop in growth there… Once again EURUSD can't hold a high and this time at much lower levels than in past years when it fell repeatedly at the seams. Eventually, the squeeze in short EURUSD will be over and the rush into BTP will fade”, suggested Analyst Sebastien Galy at Societe Generale.

As of writing, the cross is up 0.44% at 1.3157 and a surpass of 1.3158 (MA100d) would then target 1.3202 (high Apr.16) and finally 1.3229 (50% of feb-Apr slide).
On the flip side, support levels align at 1.3032 (MA21d) followed by 1.2988 (low Apr.25) and then 1.2958 (MA200d).

Cyprus' parliament approves EU bailout

The Cypriot parliament has ratified the agreement with the European Union to bailout the country. The initiative has been approved by 29 votes in favor against 27 opposed.
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Forex: USD/CAD bounces from 2 ½-month low

The US dollar suffered in the wake of disappointing US Chicago PMI data, which fell to its lowest since September 2009. Meanwhile, the loonie benefited from strong domestic data and against this backdrop, USD/CAD slumped to an 11-week low.
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