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EUR/USD began the week lower, with a Sunday gap, and makes its way to lower ground. A bailout for Portugal is the main issue. Where will it stop? Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

  • Asian session:  Ranged  between 1.2870 to 1.2920 – around the previous close
  • Current Range between 1.28 to 1.2970
  • Further levels in both directions: Below    1.28, 1.2722, 1.2587.  Above  1.2970, 1.3080,  1.3180, 1.3267, 1.3334, 1.3440, 1.3576,  1.37, 1.3786,  1.3950 and 1.4030.
  • 1.2970 was the lowest level in 4 months, and and now serves as resistance.
  • Significant support is only at 1.2722.

Euro/Dollar trending down- click to enlarge graph

EUR/USD Fundamentals –

  • 7:45 French Industrial Production. Exp. +1.1%.
  • 12:00 ECB President Jean Claude Trichet talks.

* All times are GMT.

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

EUR/USD Sentiment

  • A bailout for Portugal is now on the agenda – Germany and France push the small nation to take a bailout
  • US Non-Farm Payrolls disappointed on Friday, but it didn’t cheer the Euro.
  • Inflation is becoming problematic for Europe. This comes as employment is still high. Double trouble for Europe. Trichet isn’t likely to raise the rate later in the week.
  • A consultation paper about defaulting of banks stirs the markets. Greece is denying talks about default, but the European Commission is pushing through with it. Irish Banks also endangered.

Currensee Community: 62% are long , 38% are short, more than yesterday. These are 1279 open positions in real accounts trading this pair at the moment.