EUR/USD Dec. 27 – Meets Resistance on Thin Volume

EUR/USD made its way higher after some traders returned from their Christmas holidays. It’s still within range. Here’s a quick update on technicals, fundamentals and community trends.

Euro/Dollar edging higher.

EUR/USD Technicals

• Asian session:  EUR/USD rose and bounced under 1.3180..
• Current Range between 1.3080 to 1.3180.
• Further levels in both directions: Below  1.3080,  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.
• 1.3050 new lower frontier.
• 1.3440 is important resistance above and remains as such after a breakout attempt failed.
• 
  

EUR/USD Fundamentals –

No events today.

* All times are GMT.

EUR/USD Sentiment

• The Chinese rate hike risks global growth and triggered risk aversive trading. While the Aussie suffers more than the Euro, the stronger US dollar might be felt also here.
• 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%
• 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.
• Thin trading on Boxing Day means that any unexpected news will find the markets unprepared and technical lines aren’t as guarded as on normal days.
• Currensee Community: 54% are long , 46% are short. These are 1239 open positions in real accounts trading this pair at the moment.