EUR/USD Dec. 15 – Extending Falls on Spanish Worries

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.

EUR/USD Technicals

• 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

EUR/USD Sentiment

• 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.

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