EUR/USD Jan. 24 – Stopping to Rest on High Ground

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EUR/USD began the week with some consolidation at higher ground. Is it preparing for another push forward or will it lose ground?   Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

  • Asian session:  traded around 1.36.
  • Current range – 1.3576 to 1.37.
  • Euro Dollar Chart January 24

  • Further levels in both directions: Below   1.3576, 1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970, 1.2920,  1.28, 1.2722, 1.2587.
  • Above     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. This is the key on the downside.
  • Next resistance is at 1.37.

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

EUR/USD Fundamentals –

  • 8:00 French Flash Manufacturing PMI. Exp. 56.8 points.
  • 8:00 French Flash Services PMI. Exp. 55.2.
  • 8:30 German Flash Manufacturing PMI. Exp. 61.1.
  • 8:30 German Flash Services PMI. Exp. 59.2.
  • 9:00 European Flash Manufacturing PMI. Exp. 57.1.
  • 9:00 European Flash Services PMI. Exp. 54.2.
  • 10:00 European Industrial New Orders. Exp. 2.3%.

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

EUR/USD Sentiment

  • Strategists shift positions in favor of the Euro.
  • Irish prime minister resigned from leading his party. Currently this has little impact.
  • The Irish banks find new money at their own central bank. Some say that the Irish central bank is printing Euros. Trichet ignores this.
  • Spanish yields are 5.20%- this is great for the Euro. This comes as Fitch has an optimistic view about the Spanish banking sector.
  • 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 1359 open positions in real accounts trading this pair at the moment. 

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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