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EUR/USD managed to climb higher but retreated afterwards. How will it close before Christmas? Here’s a quick update on technicals, fundamentals and community trends.

eur usd forecast December 23

Euro/Dollar going back down

EUR/USD Technicals

  • Asian session:  Active session saw EUR/USD trading in range, before falling at the wake of the European session.
  • Current Range between 1.3070 to 1.3114
  • Further levels in both directions: Below     1.3070, 1.30, 1.2920, 1.2722, 1.2587.  Above 1.3114, 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 –

  • 7:45 French Consumer Spending. Exp 0.5%. Actual +2.8%.
  • 13:30  US Unemployment Claims. Exp. 421K.
  • 13:30 US Durable Goods Orders. Exp. -0.5%. Core figure, exp. +1.7%
  • 13:30 US Personal Spending. Exp. +0.5%.
  • 14:55 US Revised Consumer Sentiment. Exp. 74.7 points.
  • 15:00 US New Home Sales. Exp. 301K.

* All times are GMT.

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

EUR/USD Sentiment

  • Greek banks are under review for a downgrade.
  • 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.
  • Spanish bond yields have stabilized at high levels, around 5.50%
  • 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: 54% are long , 46% are short. These are 1277 open positions in real accounts trading this pair at the moment.