Forex Flash: Dollar firmer tone over the coming two weeks

Forex Flash: Dollar firmer tone over the coming two weeks

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Forex Flash: Dollar firmer tone over the coming two weeks - BBH

FITITOL--> FXstreet.com (San Francisco) - After testing the 1.2745 zone throughout the last week and falling almost 245 pips from that level to break 1.2500 key number and trade close to the 1.2400 today, there is still room for additional declines in the EUR/USD taking the lack of decision from the Euro leaders.

"We expect the dollar to trade with a firmer tone over the coming two weeks," says the BBH research team in a recent report, "as the upside correction in major foreign currencies continues to reverse.

"The dollar has retraced nearly half of the June move against most of the majors and we think this is likely to continue as markets remain focused on the euro zone crisis," points BBH.

According to BBH Global Currency Strategy Team, in the EUR/USD "resistance near $1.2570, $1.2750, support near $1.2400, $1.2290."