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EUR/USD Counter-Trend Rally Limited To 1.3300
The counter-trend rally in EUR/USD could stretch as high as 1.3300, but longer-term prospects for the pair still remain glum. This week's round of euro euphoria has created a potential bear failure low at 1.2624, and prompted a foray above the 1.3000 level. However, potential technical bear failures will become more commonplace in euro markets, as the European Central Bank looks to provide markets with liquidity via long-term refinancing operations similar to the action on Dec. 21, to ease funding stress in the banking sector. This creates an artificial demand for the euro. Take these refinancing operations out of ... (full story)