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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