EUR/USD is falling and losing multiple support lines, as Middle East troubles and the Christchurch earthquake scare the markets. Where will it stop? Here’s a quick update on technicals, fundamentals and community trends.
EUR/USD Technicals
- Asian session: Euro/Dollar began dropping and lost 1.3610. More lines were lost later.
- Current range – 1.35 – 1.3570
- Further levels in both directions: Below 1.35, 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.
- 1.3440 is important support below – just proved itself last week – we are not so far from this line anymore.
- The failure to conquer the critical 1.3760 and more recently 1.37 is a bearish sign
Euro/Dollar below free falling- click on the graph to enlarge.
EUR/USD Fundamentals –
- 7:00 GfK German Consumer Climate. Exp. 5.8 points. Actual: 6 points.
- 14:00 European NBB Business Climate. Exp. 4.6 points.
- 14:00 S&P/CS Composite-20 HPI. Exp. -2.2%.
- 15:00 CB Consumer Confidence. Exp. 65.1 points.
- 15:00 Richmond Manufacturing Index. Exp. 18 points.
- 18:00 FOMC member Narayana Kocherlakota talks.
* All times are GMT.
For more events later in the week, see the EUR/USD forecast
EUR/USD Sentiment
- Earthquake in Christchurch New Zealand is devastating with many casualties. The earthquake is felt all over the financial markets and boosts the US dollar – a currency that rises in fear mode.
- The situation in Libya is becoming chaotic – a civil war. As Libya is an exporter of oil, the mess sends the prices higher and this endangers global growth – yet again helping the US dollar.
- 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.
- 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. Elections are held on Friday, February 25th.
- A bailout for Portugal is getting closer as bond yields are rising and becoming unsustainable again.
Currensee Community: 61% are long , 39% are short. These are 1353 open positions in real accounts trading this pair at the moment.
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