EUR/USD broke below support and is headed towards an important support line.Where will it go? Here’s a quick update on technicals, fundamentals and community trends.
EUR/USD Technicals
- Asian session: Fell to 1.35 and recovered.
- Current range – 1.3500 – 1.3570
- Further levels in both directions: Below 1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970.
- Above: 1.3570, 1.3610, 1.37, 1.3760, 1.3830, 1.3950, 1.4030, 1.4160 and 1.4230.
- The failure to conquer the critical 1.3760 level sent the pair down
- 1.3440 is important support below, and it’s getting closer after 1.35 is broken.
Euro/Dollar breaking below support – click on the graph to enlarge.
EUR/USD Fundamentals –
- 10:00 European Industrial Production. Exp. -0.1%.
- 15:00 FOMC Member William Dudley talks.
* All times are GMT.
For more events later in the week, see the EUR/USD forecast
EUR/USD Sentiment
- Bailout talks for the troubled German bank WestLb are stuck. When banking troubles reach Europe’s powerhouse, this has a strong impact on the Euro.
- The departure of Axel Weber from the ECB continues to weigh on the Euro.
- There are growing talks of a default in Ireland. Opposition party in Ireland, Fine Gael, wants a haircut for senior bondholders. Now they have a precedent of a default in Denmark to rely on. The current government left this issue for the next government.
- US weekly jobless claims were excellent – only 383K – this helped the dollar.
- A bailout for Portugal is getting closer as bond yields are rising and becoming unsustainable again.
Currensee Community: 60% are long , 40% are short. These are 1320 open positions in real accounts trading this pair at the moment.
Share
