EUR/USD Dec. 3 – Showing Strength Ahead of NFP

EUR/USD manages to trade in higher levels after Trichet’s  maneuver and is awaiting to rock on the Non-Farm Payrolls. Will it continue higher, or was this just a temporary recovery  ? Here’s a quick update on technicals, fundamentals and community trends.

Euro/Dollar recovering above 1.32.

EUR/USD Technicals

• Asian session:  EUR/USD trades quietly around 1.32..
• Current Range between 1.32 to 1.3267
• Further levels in both directions: Below   1.32, 1.3114, 1.30, 1.2920, 1.2722, 1.2587.  Above   1.3267, 1.3334, 1.3430, 1.3640, 1.37, 1.3830,  1.3950 and 1.4030.
• 1.2720 is the next, very strong support line.
• 1.3830 significant higher point – far away now.

EUR/USD Fundamentals –

• 7:30ECB president speaks. This time, he doesn’t say anything or do any sneaky move
• 9:00 European Final Services PMI. Exp. 55.2.
• 10:00 European Retail Sales. Exp. +0.4%.
• 13:30 US Non-Farm Payrolls. Exp. +150K.
• 13:30 US Unemployment Rate. Exp. 9.6%.
• 15:00 ISM Non-Manufacturing PMI. Exp. 54.7 points.
• 15:00 US Factory Orders. Exp. -0.7%.

* All times are GMT.

EUR/USD Sentiment

• Focus is on the Non-Farm Payrolls. As it seems now, the market reaction will be “normal” – a good number will boost the US dollar, and a weak number will weaken it. Note that trading will be extremely choppy.
• Contagion is weaker  – with troubles already in 5 countries. Spanish bonds yields made a sharp drop after hope turned to Trichet.
• Currensee Community: 41% are long , 59% are short- yesterday we had more shorts. These are 1201  open positions in real accounts trading this pair at the moment. The community doesn’t believe in this Euro recovery.

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