Positive German business sentiment didn’t help as the US dollar’s strength is overwhelming. Positive comments from Washington as US traders return from a holiday result in a stronger dollar and a lower EUR/USD. The pair is now tumbling down to a confluence of the uptrend support line that accompanied it for a month and the lows seen in the previous week. Will it stop here or will this turn into an avalanche? As the chart shows, the 1.3485 line is where the clear uptrend support meets the lows seen last week. The pair is trading exactly in that sport right now. After EUR/USD struggled to advance from consolidation, it is now falling. Further weak support can be found at 1.3450 and 1.3415, with the really strong line awaiting only at 1.3325. The German ZEW Economic Sentiment surprised to the upside, with a score of 52.8 points instead of 49.2 expected and 49.6 last month. This small surprise was not enough. In Washington, recent headlines were positive: the sides are getting closer to a deal that would allow an open government and a raise of the debt ceiling at least until the end of the year. While the deal isn’t final, the dates aren’t clear and this proposed solution isn’t long term, the growing optimism won over, as the deadline is getting closer. According to recent calculations, the US is to hit the debt ceiling and potentially default on its debt on October 17th – just two days to go. This scary scenario has triggered worries from all over the world, and it seems that politicians are finally getting their act together, in the last moment as always. Markets were somewhat sleepy yesterday, as traders in the US were enjoying Columbus Day. But now, all the action is back. From here, the markets are probably awaiting new data: if the deal is indeed getting closer, the fall of EUR/USD could turn into an avalanche. It’s important to remember that the ECB is worried about the credit conditions in Europe. If there is no deal, we could see a bounce from this perfect line. Further reading: EUR/USD weekly analysis Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next FXBeat: FXstreet’s new forex news service with Jamie Coleman Yohay Elam 9 years Positive German business sentiment didn't help as the US dollar's strength is overwhelming. Positive comments from Washington as US traders return from a holiday result in a stronger dollar and a lower EUR/USD. The pair is now tumbling down to a confluence of the uptrend support line that accompanied it for a month and the lows seen in the previous week. Will it stop here or will this turn into an avalanche? As the chart shows, the 1.3485 line is where the clear uptrend support meets the lows seen last week. The pair is trading exactly in that sport right… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.