EUR/USD begins the week with a drop to a lower range, after failing again to break higher resistance. Will the drops continue? Here’s a quick update on technicals, fundamentals and community trends.
- Asian session: Traded higher, but below 1.3400. Fall began when the Europeans joined.
- Current range – 1.3267 to 1.3334.
- Further levels in both directions: Below 1.3267, 1.3180, 1.3080, 1.2970, 1.2920, 1.28, 1.2722, 1.2587.
- Above 1.3267, 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 dropping – click on the graph to enlarge.
EUR/USD Fundamentals –
- 12:15 US FOMC member Charles Plosser talks.
* All times are GMT. For more events later in the week, see the EUR/USD forecast.
- The market was very optimistic last week, but here are 5 doubts about the Euro rally.
- The market awaits the meeting of EU finance ministers, and especially the decision if the bailout fund will be enlarged. It seems that Germany isn’t keen on adding more money.
- Spanish bond yields are stable at 5.33%.
- A bailout for Portugal is fading away, as bond auctions were quite successful – this includes also Spain and Italy’s auctions.
- The bank holiday in the US, for Martin Luther King, means thinner volume later in the day.
- Inflation is becoming problematic for Europe. This comes as employment is still high. Double trouble for Europe. Trichet showed concerns about inflation and boosted the Euro.
Currensee Community: 62% are long , 38% are short. These are 1298 open positions in real accounts trading this pair at the moment.