EUR/USD Jan. 4 – Holding on to Highs As Full Action Begins



EUR/USD managed to hold on to the relatively higher range as the markets that still were on holiday now get back to business. We also have quite a few indicators today. Here’s a quick update on technicals, fundamentals and community trends.

eur usd forecast january 4

Euro/Dollar now still high

EUR/USD Technicals

  • Asian session:  Stable session saw the pair hold on to support at 1.3334.
  • Current Range between 1.3334 to 1.3440
  • Further levels in both directions: Below  1.3334, 1.3267, 1.3180, 1.3080,  1.30, 1.2920, 1.2722, 1.2587. Above    1.3576,  1.37, 1.3786, 1.3950 and 1.4030.
  • 1.3080 important support below
  • 1.3440 is important resistance above.

EUR/USD Fundamentals -

  • 8:55 German Unemployment Change. Exp. -12K.
  • 10:00 European CPI Flash Estimate. Exp. +2%.
  • 15:00 US Factory Orders. Exp. -0.1%.
  • 19:00 US FOMC Meeting Minutes.

* All times are GMT.

For more events later in the week, see the EUR/USD forecast.

EUR/USD Sentiment

  • Talks of China buying Spanish bonds helped the Euro, although this may be merely a political gesture rather than real help. Spanish bonds are stable in the meantime.
  • Portugal has a bond auction this week – many eyes are on it, and some speculate it will be the last domino.
  • Europe has a lot of debt to pay back in 2011, probably above 1 trillion euros. This could evolve into a full blown “credit crunch 2” crisis.
  • Currensee Community: 52% are long , 48% are short. These are 1279  open positions in real accounts trading this pair at the moment.





About

Yohay Elam – Founder, Writer and Editor

I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me.

Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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