EUR/USD made a move higher and enjoys a higher range now once again. We have some important US events today to rock currencies. How will it end th year? Here’s a quick update on technicals, fundamentals and community trends.
Euro/Dollar now in higher range.
EUR/USD Technicals
- Asian session: Quiet session with the pair stabilizing higher.
- Current Range between 1.3180 to 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 –
- 13:30 US Unemployment Claims. Exp. 416K.
- 14:45 US Chicago PMI. Exp. 61.2 points.
- 15:00 US Pending Home Sales. Exp. +1.8%
* All times are GMT.
For more events later in the week, see the EUR/USD forecast.
EUR/USD Sentiment
- No fresh bad news concerning the European debt crisis also help the Euro.
- Liquidity will remain low and will drop even further after the European session ends and markets drift into the new year.
- The ECB didn’t manage to drain the excessive cash it created by buying bonds. This means that there’s excessive money in the markets, and this could have pushed the Euro higher. The effect is probably temporary, as banks prefer staying more liquid before the new year.
- 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%. This stability is with us for over a week.
- Currensee Community: 50% are long , 50% are short. These are 1255 open positions in real accounts trading this pair at the moment.
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