EUR/USD Jan. 5 – Falling to Lower Range

EUR/USD turned around and fell, when the markets returned to full blast after the holidays. A busy day ahead will rock the pair. Will it continue sliding? Here’s a quick update on technicals, fundamentals and community trends.

Euro/Dollar now still high

EUR/USD Technicals

• Asian session:  Quiet session saw the pair sliding to the lower end of the range, then falling below.
• 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, 1.3440, 1.3576,  1.37, 1.3786,  1.3950 and 1.4030.
• 1.3440 is important resistance above.
• 1.3080 important support below

EUR/USD Fundamentals –

• 9:00 European Final Services PMI. Exp. 53.7, actual 54.2.
• 10:00 European Industrial New Orders. Exp. +1.3%.
• 10:00 European PPI. Exp. +0.3%.
• 10:45 Portuguese bond auction results
• 12:30 US Challenger Job Cuts.
• 12:15 US ADP Non-Farm Payrolls. Exp. +101K.
• 15:00 US ISM Non-Manufacturing PMI. Exp. 55.6 points.

* All times are GMT.

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

EUR/USD Sentiment

• We have two important hints for the Non-Farm Payrolls on Friday – ADP Non-Farm Payrolls and Services PMI (Non-Manufacturing). Here’s a setup  for trading the ADP NFP.
• Portugal’s bond auction is important for the whole debt crisis in 2011 – many eyes are on it, and some  speculate it will be the last domino.
• Greece is denying the chances of a default – too much smoke without fire.
• Europe has a lot of debt to pay back in 2011, probably above 1 trillion euros. This could evolve into a full blown “credit crunch 2” crisis.
• Currensee Community: 50% are long , 50% are short. These are 1270  open positions in real accounts trading this pair at the moment.