EUR/USD dipped below the all-important line, bot now managed to get back above it. It’s quite a busy day today. Will it recover? Here’s a quick update on technicals, fundamentals and community trends.
* Post updated 11:20 GMT.
EUR/USD Technicals
- Asian session: Gradually lost ground and got close to support – fell below in the wake of the European session.
- Current range – 1.3334 to 1.3440.
- Further levels in both directions: Below 1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970, 1.2920, 1.28, 1.2722, 1.2587.
- Above 1.3576, 1.37, 1.3786, 1.3950, 1.4030 and 1.4220.
- 1.3440 is the key level – it has stopped the Euro so many times in the past – we’ve seen false breakouts in both directions. Was yesterday’s rise a false breakout?
- Important support is only at 1.3080, with 1.2970 being the second important line.
Euro/Dollar moving on up – click on the graph to enlarge.
EUR/USD Fundamentals –
- 7:00 German PPI. Exp. +0.5%. Actual +0.7% – Euro positive.
- 9:00 ECB Monthly Bulletin.
- 13:30 US Unemployment Claims. Exp. 422K.
- 15:00 US Existing Home Sales. Exp. 4.88 million.
- 15:00 US Philly Fed Manufacturing Index. Exp. 20.7 points.
- 15:00 European Consumer Confidence. Exp. -12 points.
- 15:00 US CB Leading Index. Exp. +0.7%.
* All times are GMT. For more events later in the week, see the EUR/USD forecast.
EUR/USD Sentiment
- A report about the Spanish government bailing out banks is pushing Spanish bond yields higher, at 5.40%, after they fell yesterday.
- The Irish banks find new money at their own central bank. Some say that the Irish central bank is printing Euros. Trichet ignores this.
- The market was very optimistic last week, but here are 5 doubts about the Euro rally.
- Inflation is becoming problematic for Europe. This comes as employment is still high. Double trouble for Europe. Trichet showed concerns about inflation and boosted the Euro. Less fear from a rate hike helps the Euro – a rate hike is also pushed by German PPI.
Currensee Community: 61% are long , 39% are short. These are 1399 open positions in real accounts trading this pair at the moment.