Home EUR/USD Feb. 23 – Testing Critical Resistance

EUR/USD Feb. 23 – Testing Critical Resistance

EUR/USD is rising and hesitating towards critical resistance after an impressing comeback yesterday. Will it break higher this time? Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

  • Asian session:  Euro/Dollar jumped above 1.3700 and managed to stay there.
  • Current range – 1.37 – 1.3760

EUR USD Chart February 23

  • Further levels in both directions: Below 1.37, 1.3610, 1.35, 1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970.
  • Above: 1.37, 1.3760, 1.3830,  1.3950, 1.4030, 1.4160 and 1.4230.
  • 1.3440 is important support below – just proved itself last week – EUR/USD escaped it once again.
  • The  failure  to conquer the critical 1.3760 a few weeks ago was a bearish sign. Will it break higher this time.

Euro/Dollar below on higher ground- click on the graph to enlarge.

EUR/USD Fundamentals –

  • 6:30 French CPI. Exp. -0.1%. Actual -0.2%.
  • 10:00 European Industrial New Orders. Exp. -0.8%. Actual +2.1%. Euro positive.
  • 15:00 US Existing Home Sales. Exp. 5.27 million.
  • 17:00 ECB President Jean-Claude Trichet talks.
  • 17:15 ECB member Axel Weber talks.
  • 18:30 US FOMC member Charles Plosser talks.

* All times are GMT.

For more events later in the week, see the  EUR/USD forecast

EUR/USD Sentiment

  • The devastating earthquake in Christchurch, New Zealand, now has a more limited effect.
  • The civil war in Libya is horrible, but the pledge by the Saudis to fill in for the missing capacity lowered the price of oil and weakened the dollar..
  • The hawkish comment by ECB members, Mersch and Smaghi about raising the rates continue to boost the Euro.
  • Irish debt is a big burden: 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. Elections are held on Friday, February 25th.
  • A bailout for Portugal is getting closer as bond yields are rising and becoming unsustainable again.

Currensee Community: 59% are long , 41% are short. These are 1383 open positions in real accounts trading this pair at the moment.  

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.