EUR/USD Aug. 19: Euro Tests Long Term Support
EUR/USD Forecast

EUR/USD Aug. 19: Euro Tests Long Term Support

Another attempt to break higher failed yesterday, and the long term uptrend support is getting closer. Will it break on this busy day? Here’s a quick update on fundamentals, technicals and community trends.

EUR/USD approaching long term support line – click to enlarge

EUR/USD Technicals

  • Asian session:  Busy session – EUR/USD broke down under yesterday’s range from to the vicinity of .28.
  • Current Range is narrower: 1.2787 to 1.2930. Significant support at 1.2787. Explanation below.
  • Further levels: Below, 1.2722, 1.2611, and 1.2460.  Above  1.30, 1.3114 and 1.3267.
  • Medium term: On August 10th, EUR/USD lost a  steep uptrend channel that began on June 29th. It is now consolidating.
  • Long term: Less steep uptrend channel began on June 7th, from the year-to-date low of 1.1876 and continues to support the pair. For today, it stands on 1.2787. A loss of this level will trigger a sharp fall.

EUR/USD Fundamentals

  • 6:00 GMT: German PPI. Exp. 0.2%.
  • 12:30 GMT: US Unemployment Claims. Exp. drop from 484K to 478K.
  • 14:00 GMT: US Philly Fed Manufacturing Index. Exp. Rise from 5.1 to 7.1 points.

EUR/USD Sentiment

  • Market is in risk aversive mood. This means that bad US indicators are dollar positive.
  • Important US indicators will cause choppy trading around them.
  • Currensee Community: 55% are Short, 45% are long. This is a small shift towards longs- yesterday it was 57:43. These are 902 open positions in real accounts trading this pair at the moment.

Note – This is a new and still experimental section on Forex Crunch. It’s still in development.

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free..

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.