Search ForexCrunch

EUR/USD is rising from the lower range to a higher one on an upcoming agreement in the European summit, and positive hints from China. Will this be enough for a positive close of the week? Here’s a quick update on technicals, fundamentals and community trends.

eur usd forecast December 17

Euro/Dollar moving up.

EUR/USD Technicals

  • Asian session:  Active session saw a breakout above 1.3267.
  • Current Range between 1.3267 and 1.3334.
  • Further levels in both directions: Below    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 –

  • 8:15 ECB member Axel Weber talks.
  • 9:00 German Ifo Business Climate. Exp. 109.2 points.
  • 10:00 European Trade Balance. Exp. +2.9 billion.
  • 15:00 US CB Leading Index. Exp. +1.2%.

* All times are GMT.

For the major events due later in the week, see the  EUR/USD outlook

EUR/USD Sentiment

  • 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 today.
  • China says it will wait with rate hikes due to market turbulence. No rate hike is good for the Euro.
  • Spanish bonds yields are still high on  Moody’s warns of a downgrade.
  • The IMF joined the Irish parliament by approving the bailout plan.
  • Moody’s downgrades Ireland from AA2 to BAA1. No real surprise here.
  • US bond yields take a break – they went up to 3.57% but closed under 3.50%. This mostly affects USD/JPY, but also EUR/USD.
  • Currensee Community: 50% are long , 50% are short. These are 1277 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..