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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.

eur to usd forecast December 15

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.

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