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

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.

• 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.