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.