EUR/USD Jan. 6 – Lost Critical Support

EUR/USD lost the important support line during a busy day. Where will this stop ? Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

• Asian session:  Was more quiet than beforehand, but still saw some downwards action..
• Current Range between 1.30 to 1.3080



• Further levels in both directions: Below    1.30, 1.2920, 1.2722, 1.2587.  Above   1.3080,  1.3180, 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 lost – this is a critical line. 1.2970 next significant spot

Euro/Dollar weak – click to enlarge graph

EUR/USD Fundamentals –

• 10:00 European Retail Sales. Exp. +0.3%. Actual -0.8%.
• 11:00 German Factory Orders. Exp. +1%. Actual, +5.2%.
• 13:30 US Unemployment Claims. Exp. 400K. Actual 409K. Despite this disappointment, the 4 week moving average is still lower, providing high hopes for the Non-Farm Payrolls.

* All times are GMT. * Post updated 15:40 GMT.

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

EUR/USD Sentiment

• US figures were great so far, both ADP and Services PMI exceeded expectations and pushed the dollar higher.
• Greece is denying the chances of a default – too much smoke without fire.
• Inflation is becoming problematic for Europe. This comes as employment is still high. Double trouble for Europe.
• Talks about allowing defaults for senior debt holders is also a burden on the common currency.
• A consultation paper about defaulting of banks stirs the markets. Greece is denying talks about default, but the European Commission is pushing through with it. Irish Banks also endangered.
• Currensee Community: 49% are long , 51% are short. These are 1312 open positions in real accounts trading this pair at the moment.