EUR/USD is trying to break out of the tight high range, and move even higher, as Egypt faces a critical day. Will we see EUR/USD break higher? Or will this attempt fail again? Here’s a quick update on technicals, fundamentals and community trends.
EUR/USD Technicals
- Asian session: Traded between 1.37 to 1.3760 and failed to break higher.
- Current range – 1.37 to 1.3760.
- Further levels in both directions: Below 1.37, 1.3576, 1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970, 1.2920, 1.28, 1.2722, 1.2587.
- Above: 1.3760, 1.3830, 1.3950, 1.4030 and 1.4220.
- 1.37-1.3760 critical range
- 1.3440 is the key downside level – it has stopped the Euro so many times in the past.
Euro/Dollar manages to hold above 1.37- click on the graph to enlarge.
EUR/USD Fundamentals –
- 8:55 European German Unemployment Change. Exp. 11K, Actual -13K.
- 9:00 European Final Manufacturing PMI. Exp. 56.9. Actual 57.3.
- 10:00 European Unemployment Rate. Exp. 10.1%.Actual 10.0%.
- 15:00 ISM Manufacturing PMI. Exp. 57.8 points. Important hint for the Non-Farm Payrolls.
- 15:00 US Construction Spending. Exp. +0.1%.
- 11:15 ECB president Jean-Claude Trichet talks.
* All times are GMT.
For more events later in the week, see the EUR/USD forecast
EUR/USD Sentiment
- Egyptian crisis heightens today as the “million-man march” is planned in Cairo. There are growing signs that the Egyptian army is abandoning president Mubarak.
- Greek default? Plans are drawn for a making a 25% haircut on Greek debt, codenamed “Brady plan”. This has been overshadowed by the events in Egypt.
- British contraction in Q4 weighs on the Euro.
- The Irish parliament approved the finance bill, the final seal for the EU / IMF bailout program.
- Spanish bond yields are dropping significantly to 5.27%. This helps the Euro.
- Inflation is becoming problematic for Europe. This comes as employment is still high. Double trouble for Europe. Trichet showed concerns about inflation and boosted the Euro. It already reached 2.4%. Today the bears will probably be reinforced with the bad unemployment rate.
Currensee Community: 62% are long , 38% are short. These are 1369 open positions in real accounts trading this pair at the moment.
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