EUR/USD Feb. 24 – Falling After Failed Breakout Attempt

1

EUR/USD failed to settle above critical resistance and its losing ground rather fast. Will it fall more or make another breakout attempt? Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

  • Asian session:  Euro/Dollar jumped traded high in the Asian session, but couldn’t stay above 1.3760.
  • Current range – 1.37 – 1.3760.

EUR USD Chart February 24

  • Further levels in both directions: Below 1.37, 1.3610, 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 last week – EUR/USD escaped it once again.
  • The failure to conquer the critical 1.3760 a few weeks ago was a bearish sign. We just saw a repeat of this scenario.

Euro/Dollar falling down towards 1.37- click on the graph to enlarge.

EUR/USD Fundamentals –

  • 7:00 German Final GDP. Exp. +0.4%. Actual +0.4%.
  • 13:30 US Unemployment Claims. Exp. 403K.
  • 13:30 US Durable Goods Orders. Exp. +2.5%. Core Durable Goods Orders exp. 0.4%.
  • 15:00 US New Home Sales. Exp. 330K.

* All times are GMT.

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

EUR/USD Sentiment

  • The price of oil continues to surge as the Libyan civil war rages, and there is still fear of contagion to other oil-producing mid-East countries.
  • The hawkish comment by ECB members, Mersch and Smaghi about raising the rates continue to boost the Euro, despite the fact that inflation is “imported” – not a result of domestic pressures.
  • A drop of jobless claims under 400K once again can help the US dollar.
  • 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: 59% are long , 41% are short. These are 1383 open positions in real accounts trading this pair at the moment. 

Get the 5 most predictable currency pairs

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 a 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.

1 Comment

  1. Pingback: Falling After Failed Breakout Attempt | PilotFX