EUR/USD made a round trip and now returned to the area of the long term uptrend support. Will it close the week above the line? Or will it collapse? Here’s a quick update on fundamentals, technicals and community trends.
EUR/USD approaching long term support line – click to enlarge
EUR/USD Technicals
- Asian session: Busy session – EUR/USD traded in a very narrow range in a quiet Asian session, between 1.28 and 1.2840.
- Current Range is between 1.2797 to 1.2930. Significant support at 1.2797. Explanation below.
- Further levels: Below, 1.2722, 1.2611, and 1.2460. Above 1.30, 1.3114 and 1.3267.
- Medium term: On August 10th, EUR/USD lost a steep uptrend channel that began on June 29th. It is now consolidating.
- Long term: Less steep uptrend channel began on June 7th, from the year-to-date low of 1.1876 and continues to support the pair. For today, it stands on 1.2797. A loss of this level will trigger a sharp fall.
EUR/USD Fundamentals
- Nothing on the agenda today.
EUR/USD Sentiment
- Market is in risk aversive mood. This means that bad US indicators are dollar positive.
- Yesterday’s worrying US figures temporarily sent the dollar down, but these losses were erased quickly.
- Moves towards the end of the trading week will cause high volatility, especially around the close of the European session.
- Currensee Community: 58% are Short, 42% are long. This is a small shift towards shorts- yesterday it was 55:45. These are 905 open positions in real accounts trading this pair at the moment.
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