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EUR/USD broke below the key 1.0800 level. It is risky to pick a bottom, according to economists at ING.
We must remember that EUR/USD was the biggest G10 long positions entering the US debt-ceiling chaos, and since the latest development turned out to be positive for the Dollar, we are probably seeing a substantial long-squeeze in the pair.”
“There is considerable room for a hawkish repricing in Fed rate expectations, so it’s risky to pick a bottom in EUR/USD. The next real support level will probably be at 1.0700.”
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