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EUR/USD broke below support and is headed towards an important support line.Where will it go?  Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

  • Asian session:  Fell to 1.35 and recovered.
  • Current range – 1.3500 – 1.3570

EUR USD Breaking Below Support - February 14

  • Further levels in both directions: Below    1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970.
  • Above: 1.3570, 1.3610, 1.37, 1.3760, 1.3830,  1.3950, 1.4030, 1.4160 and 1.4230.
  • The  failure  to conquer the critical 1.3760 level sent the pair down
  • 1.3440 is important support below, and it’s getting closer after 1.35 is broken.

Euro/Dollar breaking below support – click on the graph to enlarge.

EUR/USD Fundamentals –

  • 10:00 European Industrial Production. Exp. -0.1%.
  • 15:00 FOMC Member William Dudley talks.

* All times are GMT.

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

EUR/USD Sentiment

  • Bailout talks for the troubled German bank WestLb are stuck. When banking troubles reach Europe’s powerhouse, this has a strong impact on the Euro.
  • The departure of Axel Weber from the ECB continues to weigh on the Euro.
  • There are growing talks of a default in Ireland. 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.
  • US weekly jobless claims were excellent – only 383K – this helped the dollar.
  • A bailout for Portugal is getting closer as bond yields are rising and becoming unsustainable again.

Currensee Community: 60% are long , 40% are short. These are 1320 open positions in real accounts trading this pair at the moment.