EUR/USD managed to break higher, as hopes of a resolution to Portugal’s troubles are seen. Will these gains hold? Here’s a quick update on technicals, fundamentals and community trends. EUR/USD Technicals
- Asian session: Managed to hold above 1.2970.
- Current range – 1.2970 to 1.3080.
- Further levels in both directions: Below 1.2970, 1.2920, 1.28, 1.2722, 1.2587.
- Above 1.3080, 1.3180, 1.3267, 1.3334, 1.3440, 1.3576, 1.37, 1.3786, 1.3950 and 1.4030.
- 1.3080, previously a strong support line, is now resistance.
- Significant support is only at 1.2722.
Euro/Dollar in range- click to enlarge graph
EUR/USD Fundamentals –
- 13:30 European Industrial Production. Exp. +0.5%. Actual +1.2%. Euro-positive.
- 13:30 US Treasury Secretary Timothy Geithner talks.
- 13:30 US Import Prices. Exp. +1.3%.
- 18:00 US FOMC member Richard Fisher talks.
- 19:00 US Federal Budget Balance. Exp. -80 billion.
- 19:00 US Beige Book.
* All times are GMT. For more events later in the week, see the EUR/USD forecast.
EUR/USD Sentiment
- A bailout for Portugal is still in the limelight, as Portugal goes to the markets to raise money today. Will they succeed?
- There’s a rumor that primary dealers will fully underwrite Portuguese bond auction.
- There are talks about a combined bailout for Spain and Portugal, focusing on banks.
- Japan and China talk of buying bonds of Euro zone countries – this is probably quite limited.
- Belgium is struggling to decide on a budget, as its bond yields are also on the rise.
- 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.
- Trichet won’t be the hero to make the difference regarding the debt crisis.
Currensee Community: 62% are long , 38% are short, more than yesterday. These are 1358 open positions in real accounts trading this pair at the moment.
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