EUR/USD is consolidating in a tight range. Usually these quiet times are eventually followed by an eruption. Will Bernanke supply the fuel today? Here’s a quick update on technicals, fundamentals and community trends.
- Asian session: Euro/Dollar found support at 1.3610..
- 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 is the key resistance line.
- 1.3440 is important support below, not so close at the moment.
Euro/Dollar small recovery- click on the graph to enlarge.
EUR/USD Fundamentals –
- 7:00 German Trade Balance. Exp. 11.9 billion. Actual 14 billion.
- 15:00 Ben Bernanke talks
* All times are GMT.
For more events later in the week, see the EUR/USD forecast
- Bernanke is expected to talk about QE2 – some members of the Federal Reserve think that the bond buying scheme should be stopped, as the economy is recovering. A hint in that direction will boost the dollar.
- Chinese rate hike had very little impact on the markets.
- 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 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: There are talks that Mubarak will leave to Germany, aiding a safe transition of power to Suleiman and a resolution to the crisis.
Currensee Community: 62% are long , 38% are short. These are 1389 open positions in real accounts trading this pair at the moment.Get the 5 most predictable currency pairs