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However, in addition to being significantly overbought (70% of positions are long), the single currency is approaching an important supply zone at 1.0940/35, which consists of the weekly R2, and even more importantly, of the July highs. As long as this resistance is intact, long positions are risky, but a close above 1.0940/35 will imply an extension of the current recovery by 75 pips, up to the June 23 high at 1.1015.
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