EUR/USD Feb. 9 – Consolidating in Range

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.

EUR/USD Technicals

• 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

EUR/USD Sentiment

• 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.