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EUR/USD is facing tough resistance after making a sharp rise and holding on to it. The week ends with many economic releases. How will it end? Here’s a quick update on technicals, fundamentals and community trends. EUR/USD Technicals

  • Asian session:  Settled down around the 1.3334 line
  • Current range – 1.3334 to 1.3440
  • Further levels in both directions: Below   1.3334, 1.3180, 1.3080, 1.2970, 1.2920,  1.28, 1.2722, 1.2587.
  • Above  1.3440, 1.3576,  1.37, 1.3786,  1.3950 and 1.4030.
  • 1.3440 is the key level – it has stopped the Euro so many times in the past.
  • Important support is only at 1.3080.

Euro/Dollar moving higher – click on the graph to enlarge.

EUR/USD Fundamentals –

  • 7:00 German Final CPI. Exp. !%. Actual 1%.
  • 10:00 European CPI. Exp. 2.2%. Core CPI exp. 1.1%.
  • 13:30 US Retail Sales. Exp. +0.8%. Core sales, exp. +0.7%.
  • 13:30 US CPI. Exp. +0.4%. Core, exp. +0.1%.
  • 14:15 US Industrial Production. Exp. +0.5%.
  • 14:15 US Capacity Utilization Rate. Exp. 75.6%.
  • 14:55. US Consumer Sentiment. Exp. 75.5 points.
  • 15:00 US Business Inventories. Exp. +0.7%.

* All times are GMT. For more events later in the week, see the EUR/USD forecast.

EUR/USD Sentiment

  • A bailout for Portugal is fading away, as bond auctions were quite successful – this includes also Spain and Italy’s auctions.
  • Japan and China’s talk about buying European bonds sure helps lowering yields, even if it’s marginal.
  • Belgium is struggling to decide on a budget, as its bond yields are also on the rise.
  • 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’s talk about fighting inflation following the rate decision boosted the Euro. Trichet shows that he’s a big hawk.

Currensee Community: 62% are long , 38% are short, more than yesterday. These are 1260 open positions in real accounts trading this pair at the moment. The community saw the recovery and is seeing further gains.