EUR/USD Jan. 12 – Settling in Higher Range on Hopes

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.