EUR/USD steadies below 1.2400

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EUR/USD steadies below 1.2400

FITITOL--> FXstreet.com (Córdoba) - The euro managed to pare losses versus the dollar after hitting a fresh 1-month low of 1.2363 in the wake of ECB's announcement and press conference comments, as well as better than expected US employment data, which boosted the greenback.

EUR/USD rebounded from the 1.2365 area although the recovery it's being capped by the 1.2390 zone. At time of writing, EUR/USD is quoting at the 1.2380/85 region, recording a 1.2% loss on the day.

From a technical view, Slobodan Drvenica, analyst at Windsor Brokers Ltd, notes that the loss of the 1.2400 base, increases risk of revisiting key support and two-year low at 1.2287, posted on Jun 1.

"Negative tone now dominates on lower and larger timeframes, with overextended conditions on hourly and 4H charts suggesting corrective action", says the analyst. "Previous strong supports at 1.2400/40, now offers initial resistance, while only break above today's high and 50% retracement of 1.2691/1.2376 at 1.2535, will provide relief".