EUR/USD Dec. 27 – Breaks Higher as Trading Volume

EUR/USD managed to break through the resistance line that capped it, but didn’t get to far. Trading volume is on the rise after the long weekend. Here’s a quick update on technicals, fundamentals and community trends.

Euro/Dollar breaking resistance.

EUR/USD Technicals

• Asian session:  EUR/USD had an active session and it broke above 1.3180..
• Current Range between 1.3180 and 1.3267.
• Further levels in both directions: Below  1.3180, 1.3080,  1.30, 1.2920, 1.2722, 1.2587.  Above 1.3267, 1.3334, 1.3576,  1.37, 1.3786,  1.3950 and 1.4030.
• 1.3080 important support below
• 1.3440 is important resistance above and remains as such after a breakout attempt failed.

EUR/USD Fundamentals –

• 14:00 US S&P/CS Composite-20 HPI. Exp.  -0.1%.
• 15:00 US CB Consumer Confidence. Exp. 56.3 points.
• 15:00 US Richmond Manufacturing Index. Exp. 11 points.

* All times are GMT.

For more events later in the week, see the EUR/USD forecast.

EUR/USD Sentiment

• The Chinese rate hike risks global growth and triggered risk aversive trading, but at least for now, the effect is fading out.
• Irish banks are still troubled and may draw weigh on the Euro.
• 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%
• Trading volume isn’t as thin as yesterday, but it’s still low in comparison to regular days during the year.
• Currensee Community: 50% are long , 50% are short. These are 1270 open positions in real accounts trading this pair at the moment.