EUR/USD Feb 2 – Consolidating After Breakout

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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.
EUR USD Chart February 2

EUR USD Chart February 2 - Click to enlarge

  • 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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About Author

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 the 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.

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