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EUR/USD Dec. 2 – Holding on to Hopes

EUR/USD is holding on to higher ground as all eyes are on ECB. Will Trichet boost the Euro and send it back to the previous trading range? Here’s a quick update on technicals, fundamentals and community trends.

euro dollar december 2

Euro/Dollar recovering above 1.3114.

EUR/USD Technicals

  • Asian session:  Quiet sessions sees EUR/USD around 1.3114.
  • Current Range between 1.3114 to 1.32.
  • Further levels in both directions: Below   1.3114, 1.30, 1.2920, 1.2722, 1.2587.  Above   1.32, 1.3267, 1.3334, 1.3430, 1.3640, 1.37, 1.3830,  1.3950 and 1.4030.
  • 1.2720 is the next, very strong support line.
  • 1.3830 significant higher point – far away now.

EUR/USD Fundamentals –

  • 10:00 European Revised GDP. Exp. +0.4%.
  • 10:00 European PPI. Exp. +0.4%.
  • 12:45 European rate decision.
  • 13:30 Jean-Claude Trichet’s press conference.
  • 13:30 US Unemployment Claims. Exp. 425K.
  • 15:00 US Pending Home Sales. Exp. -0.7%.
  • 15:00 ECB member Axel Weber talks.
  • 17:30 US FOMC member James Bullard talks.
  • 19:00 US FOMC member Elizabeth Duke talks.

* All times are GMT.

EUR/USD Sentiment

  • All eyes are on Jean-Claude Trichet – there are high expectations that the president of the ECB will announce a big bond buying scheme. If the European central bank buys a lot of bonds of peripheral countries, the yields will drop, and these countries will be able to raise more funds. Would QE have prevented the European debt crisis? Anyway, Trichet can save the day.
  • Contagion is weaker  – with troubles already in 5 countries. Spanish bonds yields made a sharp drop after hope turned to Tricher.
  • After yesterday’s figures gave hope for a good Non-Farm Payrolls, we’ll got another big hint today – jobless claims. Another outstanding number like last time will raise the bar.
  • Currensee Community: 50% are long , 50% are short- yesterday we had more shorts. These are 1250 open positions in real accounts trading this pair at the moment. Now the community leans towards a change.

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free..

Yohay Elam

Yohay Elam

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 a 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.