EUR/USD Jan. 28 – Battle Over 1.37 Continues

4

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

EUR USD Chart January 28

  • 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. 

Get the 5 most predictable currency pairs

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 the 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.

4 Comments

  1. Pingback: Crude oil price & natural gas spot price– day recap January 27 | Trading Energy

  2. Pingback: Egyptian Effect Drives EUR/USD Towards Low Support | Forex Crunch

  3. The 1,374 is a great barrer in the bullish road. I played EURUSD bullish until that limit, and I think the EURUSD need to draw the lower line of the bullish channel. Could be from 1,34. I play the pair bearish until that level and then I will come back bullish to reach the 1,4 area.