EUR/USD Dec. 21 – Recovering From Lows

EUR/USD recovered from deeper lows on thin trade, but it still didn’t retake the previous support line. Here’s a quick update on technicals, fundamentals and community trends.

Euro/Dollar small recovery

EUR/USD Technicals

• Asian session:  Thin volume saw a bounce back to the 1.3180 area.
• 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.
• Note the downtrend support forming in the past days (marked on the graph as well)

EUR/USD Fundamentals –

• 7:00  German GfK  Consumer Climate. Exp. 5.8 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.
• Now, Spanish banks are under review by Moody’s.
• China said it helped the Euro-zone during the crisis, and is trying to get closer to Europe before the US-China summit. Will they push the Euro higher?
• 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: 51% are long , 49% are short. These are 1292 open positions in real accounts trading this pair at the moment.