EUR/USD cannot break higher at the wake of the new week. Middle East turmoil and balances inflation fighting boosts. Will it conquer resistance? Here’s a quick update on technicals, fundamentals and community trends.
- Asian session: Euro/Dollar climbed above 1.37, but this was short lived.
- Current range – 1.3610 – 1.37.
- Further levels in both directions: Below 1.3610, 1.3570, 1.35, 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.
- 1.3440 is important support below – just proved itself in recent days.
- The failure to conquer the critical 1.3760 is a bearish sign
Euro/Dollar below resistance – click on the graph to enlarge.
EUR/USD Fundamentals –
- 8:00 French Flash Services PMI. Exp. 58 points. Actual – 60.8 points – significant surprise.
- 8:00 French Flash Manufacturing PMI. Exp. 55 points. Actual 55.3 points.
- 8:30 German Flash Services PMI. Exp. 69.3 points.
- 8:30 German Flash Manufacturing PMI. Exp. 60.3 points.
- 9:00 All-European Flash Services PMI. Exp. 56 points.
- 9:00 All-European Flash Manufacturing PMI. Exp. 57.3 points.
- 9:00 German Ifo Business Climate. Exp. 110.3 points.
* All times are GMT.
For more events later in the week, see the EUR/USD forecast
- The hawkish comment by ECB member Bini Smaghi on Friday about raising the rates sent the Euro skyrocketing.
- China raised the Reserve Ratio Rate. This is not the first time, but the 0.50% scale is rather large. This temporary hurt the Euro.
- Unrest in the Middle East currently has little impact on currencies, although the situation in Libya is serious – it is in a state of turmoil – a civil war. Libya is an exporter of oil.
- Irish debt is a big burden: 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.
- A bailout for Portugal is getting closer as bond yields are rising and becoming unsustainable again.
Currensee Community: 62% are long , 38% are short. These are 1490 open positions in real accounts trading this pair at the moment.Get the 5 most predictable currency pairs