EUR/USD Aug. 24: Sliding To Next Support – New Plunge Coming?

EUR/USD continues losing ground and is now approaching the next line of support. Will it bounce here or break this line and drop faster? Here’s a quick update on fundamentals, technicals and community trends.

EUR/USD below long term support – click to enlarge

EUR/USD Technicals

• Asian session:  More risk aversive trading – more losses for the Euro. EUR/USD fell gradually from 1.2680 to 1.2620,
• Current Range is between 1.2610 to 1.2690.
• Further levels: Below, 1.2460, 1.2330 and 1.2150. Above  1.2722, 1.2880, 1.2930 and 1.30
• Long term: On August 20th, EUR/USD lost less steep uptrend channel began on June 7th, from the year-to-date low of 1.1876. This turns into a resistance line now. For today, it stands on 1.2821. A break above this level will trigger a sharp recovery.

EUR/USD Fundamentals

• 6:00 GMT: German Final GDP . Exp. 53.3, Actual 2.2 – as expected..
• 10:00 GMT: Industrial New Orders. Exp. +1.6%.
• 13:00 GMT: NBB Business Climate. Exp. -6.1.
• 14:00 GMT: US Existing Home Sales. Exp. Drop to 4.66 million.

EUR/USD Sentiment

• Market is in risk aversive mood. This means that bad US indicators are dollar positive.
• The 1.2610 line is critical.
• Existing home sales in the US are important today – another fall could accelerate risk aversion and send EUR/USD over the cliff.
• Currensee Community: 55% are Short, 45% are long, with shortists having the upper hand. These are 905 open positions in real accounts trading this pair at the moment.

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