EUR/USD Feb. 7 – Showing Signs of Recovery?

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EUR/USD starts the week positively and rises on hopes. Will it recover from the blow on Friday? Or is this a temporary consolidation? Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

  • Asian session:  Active session saw 1.3560 and then a rise to 1.3620.
  • Current range – 1.3610 to 1.37.

EUR USD Chart February 7

  • Further levels in both directions: Below    1.3610, 1.3576, 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.
  • 1.3760 returns to be a big hurdle after breakdown.
  • 1.3440 is important support below.

Euro/Dollar small recovery- click on the graph to enlarge.

EUR/USD Fundamentals –

  • 9:30 European Sentix Investor Confidence.
  • 11:00 German Factory Orders. Exp. -1.4%.
  • 13:00 ECB member Axel Weber talks.
  • 20:00 US Consumer Credit. Exp. 2.2 billion.

* All times are GMT.

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

EUR/USD Sentiment

  • ECB member Gonzalez said that the ECB will eventually have to raise the rates – this boosts the Euro.
  • The fall in US unemployment rate helped the dollar close the week positively.
  • Trichet didn’t lift tone against inflation. This sent the Euro last week.
  • Egyptian crisis: Fresh escalation as anti-government and pro-Mubarak protesters clash violently. Is Egypt entering a civil war?
  • Opposition party in Ireland, Fine Gael,  wants a haircut for senior bondholders.
  • 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.

Currensee Community: 61% are long , 39% are short. These are 1367 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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