EUR/USD made a breakout and is now trading at a three week high, after a new wave of optimism boosted the common currency. Will this hold? Here’s a quick update on technicals, fundamentals and community trends.
Euro/Dollar breaking higher.
- Asian session: Quiet session under 1.3440, before breaking above this level and reaching 1.3460.
- Current Range between 1.3440 to 1.3576.
- Further levels in both directions: Below 1.3440, 1.334, 1.3267, 1.3180, 1.3114, 1.30, 1.2920, 1.2722, 1.2587. Above 1.3576, 1.37, 1.3786, 1.3950 and 1.4030.
- 1.3114 is strong lower support
- 1.3440 is important resistance above – if the break is convincing – it is a bullish sign.
EUR/USD Fundamentals –
- 10:00 German ZEW Economic Sentiment. Exp. 3.8 points.
- 10:00 European German ZEW Economic Sentiment. Exp. 10.3 points.
- 10:00 Industrial Production. Exp. +1.4%.
- 13:30 US Retail Sales. Exp. +0.6%. Core Retail Sales, exp. +0.7%.
- 13:30 US PPI. Exp. +0.6%, Core PPI exp. +0.2%.
- 15:00 US Business Inventories. Exp. +0.9%.
- 19:15 US Rate decision. No change expected.
* All times are GMT.
For the major events due later in the week, see the EUR/USD outlook
- There are hopes for a wide solution to the European debt crisis in the European summit – perhaps a permanent bailout mechanism. This is one of the 5 reasons for the Euro rally.
- On the other hand, Spanish bonds yields stabilized at a high level.. This Euro-crisis barometer is at 5.45%, getting close to the peak at the height of the Irish crisis.
- Irish parliament set to approve bailout plan on Wednesday.
- Contrary to the last FOMC meeting, this one is likely to be dull – causing choppy trading but no long term effect.
- Currensee Community: 50% are long , 50% are short. These are 1291 open positions in real accounts trading this pair at the moment. The community sees more drops in EUR/USD.
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