EUR/USD started the new week with a fresh fall, but found support at the closest level, as it finds it hard to find good news, with bigger countries endangered by the debt crisis. Will it continue lower? Here’s a quick update on technicals, fundamentals and community trends.
Euro/Dollar sliding down.
EUR/USD Technicals
- Asian session: Choppy session saw the pair in tight range.
- Current Range between 1.3114 to 1.13180.
- Further levels in both directions: Below 1.3114, 1.30, 1.2920, 1.2722, 1.2587. Above 1.3180, 1.3267, 1.3334, 1.3576, 1.37, 1.3786, 1.3950 and 1.4030.
- 1.3114 is now strong support.
- 1.3440 is important resistance above and remains as such after a breakout attempt failed.
EUR/USD Fundamentals –
- 7:00 German PPI. Exp. +0.4%. Actual +0.2%.
- 9:00 European Current Account. Exp. -6.2 billion. Actual -9.8 billion. Both figures negative for Eur.
- 15:00 European Consumer Confidence. Exp. -9 points.
* All times are GMT.
For the major events due later in the week, see the EUR/USD outlook
EUR/USD Sentiment
- France is danger of suffering a credit rating downgrade – France is Europe’s second largest economy. A downgrade or a warning will send the Euro way down.
- There are fresh worries if the Irish bailout will indeed work out.
- Spanish bonds yields are still high on Moody’s warns of a downgrade.
- Moody’s downgrades Ireland from AA2 to BAA1. No real surprise here.
- China says it will wait with rate hikes due to market turbulence. No rate hike is good for the Euro.
- 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 1248 open positions in real accounts trading this pair at the moment.
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