EUR/USD is taking a break from rising after the big breakout yesterday. Today we get more hints towards the NFP. Where will it go? Here’s a quick update on technicals, fundamentals and community trends.
EUR/USD Technicals
- Asian session: Peaked at 1.3861 before dropping.
- Current range – 1.3760 to 1.3830.
- Further levels in both directions: Below 1.37, 1.3576, 1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970.
- Above: 1.3830, 1.3950, 1.4030, 1.4160 and 1.4230.
- 1.3760 turns into significant support after the breakout.
- 1.40 is next big target, although resistance appears under and above this line.
Euro/Dollar manages taking a break after breakout- click on the graph to enlarge.
EUR/USD Fundamentals –
- 10:00 European PPI. Exp. +0.8%. Actual +0.8%.
- 12:30 US Challenger Job Cuts.
- 13:15 ADP Non-Farm Employment Change. Exp. 148K.
* All times are GMT.
For more events later in the week, see the EUR/USD forecast
EUR/USD Sentiment
- Egyptian crisis winding down after Mubarak said he’ll step down in September. The masses want him to go now, but tensions have calmed. The Egyptian army abandoned 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.
- S&P downgraded Ireland’s credit rating. Unsurprising, but a reminder that the crisis isn’t over.
- Spanish bond yields are falling sharply to 5.10% – this is big boost for 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: 63% are long , 37% are short. These are 1369 open positions in real accounts trading this pair at the moment.
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