Search ForexCrunch

EUR/USD returned into the previous range after testing deeper waters. We have a rather busy day before Christmas. Will the Euro continue the gradual fall? Here’s a quick update on technicals, fundamentals and community trends.

euro dollar forecast December 22

Euro/Dollar small recovery

EUR/USD Technicals

  • Asian session:  Active session saw EUR/USD bouncing back up.
  • 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.
  • 1.3070 new lower frontier.
  • 1.3440 is important resistance above and remains as such after a breakout attempt failed.

EUR/USD Fundamentals –

  • 7:00 German Import Prices. Exp. +0.5%.
  • 13:30 US Final GDP. Exp. 2.8%.
  • 14:00 Belgian NBB Business Climate. Exp. 1.2 points.
  • 15:00 US Existing Home Sales. Exp. 4.72 million.

* All times are GMT.

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

EUR/USD Sentiment

  • Portugal is under review for a downgrade.
  • 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.
  • 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? Probably not.
  • US bond yields take a break – they’re not challenging new highs. This mostly affects USD/JPY, but also EUR/USD.
  • Currensee Community: 50% are long , 50% are short. These are 1264 open positions in real accounts trading this pair at the moment.