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EUR/USD is moving up and moving closely to the next resistance line, as it gets some bits of good news from Spain and Germany. How will it end the week?   Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

  • Asian session:  Capped by 1.35, and moved higher afterwards..
  • Current range – 1.3334 to 1.3440.
  • EUR USD Chart January 21

  • Further levels in both directions: Below   1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970, 1.2920,  1.28, 1.2722, 1.2587.
  • Above    1.3576,  1.37, 1.3786,  1.3950, 1.4030 and 1.4220.
  • 1.3440 is the key level – it has stopped the Euro so many times in the past – we’ve seen false breakouts in both directions. It seems like this isn’t a false breakout, just a slow one.
  • Next resistance is at 1.3576.

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

EUR/USD Fundamentals –

  • 9:00 German Ifo Business Climate. Exp. 110. Actual 110.3.
  • 14:00 Belgian NBB Business Climate. Exp. 3.3 points.

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

EUR/USD Sentiment

  • Spanish yields are falling to 5.25% – this is great for the Euro. This comes as Fitch has an optimistic view about the Spanish banking sector.
  • Germany continues to push the Euro higher – the figures coming out from Europe’s powerhouse exceeded expectations this week.
  • The Irish banks find new money at their own central bank. Some say that the Irish central bank is printing Euros. Trichet ignores this.
  • 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. Less fear from a rate hike helps the Euro – a rate hike is also pushed by German PPI.

Currensee Community: 62% are long , 38% are short. These are 1350 open positions in real accounts trading this pair at the moment.