EUR/USD lost ground as US yields rose, and then got a blow from fresh Spanish worries. It still holds on to minor support, – still hanging on to hopes of an improved EU stability mechanism. Which headlines will win? Here’s a quick update on technicals, fundamentals and community trends.
Euro/Dollar breaking higher.
- Asian session: Quiet session with steady slide lower. EUR/USD dipped under 1.3334 at the wake of the European session, but recovered.
- Current Range between 1.3334 to 1.3440
- Further levels in both directions: Below 1.3334, 1.3267, 1.3180, 1.3114, 1.30, 1.2920, 1.2722, 1.2587. Above 1.3334, 1.3576, 1.37, 1.3786, 1.3950 and 1.4030.
- 1.3180 proved to be strong support.
- 1.3440 is important resistance above and remains as such after a breakout attempt failed.
EUR/USD Fundamentals –
- 10:00 European Employment Change. Exp. +0.2%
- 13:30 US CPI. Exp. +0.2%. Core CPI, exp. +0.1%.
- 14:00 US TIC Long-Term Purchases. Exp. +82 billion.
- 14:15 US Industrial Production. Exp. +0.4%.
- 14:15 US Capacity Utilization Rate. Exp. 75.1%.
- 15:00 US NAHB Housing Market Index. Exp. 16 points.
* All times are GMT.
For the major events due later in the week, see the EUR/USD outlook
- Spain is under the limelight as Moody’s warns of a downgrade. This hurt the Euro at the beginning of the session.
- Spanish bonds yields are already back to the highs of 5.60%, last seen in the height of the Irish crisis.
- 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. The European summit begins tomorrow.
- The Irish parliament is set to approve bailout plan today. The coalition has a majority, but surprises are always possible.
- US bond yields support the dollar – they touched 3.50% yesterday. This mostly affects USD/JPY, but also EUR/USD.
- Currensee Community: 50% are long , 50% are short. These are 1274 open positions in real accounts trading this pair at the moment.
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