EUR/USD Jan. 28 – Battle Over 1.37 Continues

EUR/USD is still struggling to hold above 1.37, the line that capped it for many days, as we await GDP in the US. How will it close the wee ?  Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

• Asian session:  struggled  just above 1.37..
• Current range – 1.37 to 1.3830

• Further levels in both directions: Below   1.37, 1.3576, 1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970, 1.2920,  1.28, 1.2722, 1.2587.
• Above      1.3830,  1.3950, 1.4030 and 1.4220.
• Uptrend support is naturally ascending, just at 1.37 at the time of writing, and can cushion a fall.
• 1.37 is a critical line of struggle during recent days.
• 1.3440 is the key  downside  level – it has stopped the Euro so many times in the past.

Euro/Dollar tries to hold above 1.37 – click on the graph to enlarge.

EUR/USD Fundamentals –

• 9:00 European M3 Money Supply. Exp. +2.1%.
• 13:30 US Advance GDP. Exp. +3.5%.
• 13:30 US Employment Cost Index. Exp. +0.5%.
• 13:30 US Advance GDP Price Index. Exp. +1.7%.
• 14:55 US Consumer Sentiment. Exp.73.1 points.

* All times are GMT.

EUR/USD Sentiment

• All eyes are on the American GDP – a result of more than 4% will boost the dollar, while a figure of under 3% will hurt it.
• Spain’s program to shore up the troubled savings banks (cajas) is doubted by some analysts – this looks like the situation in Ireland one year ago. Spanish yields stand at 5.51%- advancing even more.
• S&P downgrades Japan’s credit rating from AA to AA-. No country is immune to debt. What does that mean for Europe – the charts provide an answer.
• Ben Bernanke made no significant changes in the FOMC Statement, turning it into a non-event.
• British contraction in Q4 weighs on the Euro.
• The Irish parliament is ratifying the finance bill, despite protest.
• 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. Will German CPI push the Euro higher?

Currensee Community: 63% are long , 37% are short. These are 1359 open positions in real accounts trading this pair at the moment.