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.
- 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.
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