EUR/USD Aug. 18: Euro Gradually Sliding Down
Yesterday’s weak ZEW Economic Sentiment figure erased the optimism that came on the successful bond auctions. The result – no breakout. The pair now slips within the range. Will it threaten the support line?
EUR/USD Technicals
- Asian session: EUR/USD gradually slipped from 1.2890 to 1.2825.
- Current Range is narrower: 1.2800 to 1.2900. Significant support at 1.2722.
- Further levels: Below, 1.2611, 1.2460 and 1.2330. Above 1.2932, 1.30 and 1.3114.
- More: EUR/USD lost a two month uptrend channel and is now consolidating. It still hasn’t violated a lower uptrend channel.
EUR/USD Fundamentals
- No major releases are due today. News about sovereign European debt could shake the currency, with possible headlines from Moody’s.
EUR/USD Sentiment
- Market is in risk aversive mood. This means that bad US indicators are dollar positive.
- Today’s quiet day means that any technicals will play a bigger role.
- Currensee Community: 57% are Short, 43% are long. This is a small shift towards shorts – yesterday it was 56:44. These are 913 open positions in real accounts trading this pair at the moment.
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See what other traders are doing in real forex accounts. Check out Currensee. It's free..
IMO the EUR/USD can return to 1.20 on the medium term. A close below 1.26 would confirm that “theory”.