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EUR/USD advanced through the course of thin trade

Euro-USDThe euro remained higher against the US dollar on Tuesday, while trade volumes were thin, and the greenback seemed vulnerable, especially after the disappointing home sales, released yesterday.

EUR/USD reached a session high at 1.3206 at 2:40 GMT, after which consolidation followed at 1.3184. Support was expected at July 22nd low, 1.3133, while resistance was to be encountered at June 21st high, 1.3253.

The dollar remained broadly weak after on Monday an official report showed Existing Home Sales in the United States recorded an unexpected drop in June. Sales decreased by 1.2% to a seasonally adjusted annual level of 5.08 million units during June, which was the second highest level since November 2009. In May the sales figure was revised down to 5.14 million units from 5.18 million units previously. Experts had projected an increase to 5.25 million homes.

Meanwhile, the single currency was boosted after Portugal’s Prime Minister Pedro Passos Coelho’s government received the support of the head of state to stay in office until its term ends in 2015, as President Anibal Cavaco Silva ruled out early elections, which would obstruct the completion of the 78-billion EUR bailout plan.

Elsewhere, the euro was unchanged against the British pound today, with EUR/GBP cross trading at 0.8586 at 7:00 GMT, while EUR/JPY pair slipped 0.18% to 131.19 at 7:01 GMT.

Later in the trading day the Euro zone was expected to release data, regarding Economic Confidence, as better than projected results may give additional boost to the common currency.

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