EUR/USD Feb. 10 – Falling Towards Support

EUR/USD is losing the nice gains it made yesterday and is approaching support. Where will it go on this busy day ?  Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

• Asian session:  Euro/Dollar failed to break above 1.3760 and fell through 1.37. Fall continues in European session.
• Current range – 1.3610 to 1.37.

• Further levels in both directions: Below    1.3610, 1.3576, 1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970.
• Above: 1.37, 1.3760, 1.3830,  1.3950, 1.4030, 1.4160 and 1.4230.
• 1.3760proved to be key resistance once again.
• 1.3440 is important support below. We’re still far.1.3610 is closely watched now.

Euro/Dollar small recovery- click on the graph to enlarge.

EUR/USD Fundamentals –

• 7:45 French Industrial Production. Exp. +0.3%.
• 9:00 ECB Monthly Bulletin.
• 12:00 ECB member Axel Weber talks.
• 13:30 US Unemployment Claims. Exp. 411K.

* All times are GMT.

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

EUR/USD Sentiment

• First weekly unemployment claims figure after NFP will be interesting – a fall under 400K will be dollar positive and a rise above 430K will be bad. See an alternative way to trade this event.
• Opposition party in Ireland, Fine Gael,  wants a haircut for senior bondholders. Now they have a precedent of a  default in Denmark to rely on. The current government left this issue for the next government.
• Trichet didn’t lift tone against inflation. This sent the Euro last week.
• Egyptian crisis: The strikes in Egypt add fuel to the fire, and could topple the regime. Currently, ships still pass through the Suez canal, but aren’t taxed. A closure of the canal will aid the dollar.  The demonstration tomorrow, labeled “Friday of Martyrs”, might be critical.

Currensee Community: 60% are long , 40% are short. These are 1344 open positions in real accounts trading this pair at the moment.