Search ForexCrunch

The euro  enjoyed a splendid Wednesday, jumping about 350 points against the US dollar.  The dollar  has recovered some of these losses on Thursday, as EUR/USD trades in the mid-1.30 range.  The  euro  jumped following the release of the FOMC’s most recent policy meeting, which showed that  Federal policymakers were divided over  tapering QE.  In economic news, US 10-year bonds jumped to their highest level in two years, posting an average yield of 2.67%.  Germany continues to post weak inflation numbers, as WPI recorded its fourth straight decline. The ECB released its  monthly bulletin on  Thursday  and left the door open for further rate cuts. In the US, Thursday’s highlight is Unemployment Claims.

Here is a quick update on the technical situation, indicators, and market sentiment that moves euro/dollar.

EUR/USD Technical

  • Asian session: There was plenty of volatility from Euro/dollar.  The pair shot higher, breaking past 1.32 and touching a high of 1.3206.  This was followed by a sharp retraction, as the pair  consolidated at 1.3085. In the European session,  Euro/dollar has dropped to 1.3040.

Current range: 1.30 – 1.3050.

Further levels in both directions:   EUR USD Daily Forecast July 11th

 

  • Below: 1.30, 1.2940, 1.2890, 1.2840, 1.28, 1.2750, 1.27, 1.2660 and 1.26.
  • Above: 1.3050, 1.3100, 1.3160, 1.32, 1.3255, 1.3350 and  1.34.
  • 1.30 is providing weak support.  1.2940 is next.
  • On the upside, the  pair is  testing 1.3050. The next line of resistance is at the round number of 1.31.

US dollar recovering after sharp losses in Wednesday  Asian session  – click on the graph to enlarge.

EUR/USD Fundamentals

  • 6:00  German WPI. Exp. 0.3%. Actual -0.4%.
  • 6:45 French CPI. Exp. 0.1%. Actual 0.2%.
  • 8:00  ECB Monthly Bulletin.
  • 8:00 German Buba President Jens Weidmann Speaks.
  • 12:30 US Unemployment Claims. Exp. 342K. See how to trade this event with EUR/USD.
  • 12:30 US Import Prices. Exp. 0.1%.
  • 14:30 US Natural Gas Storage. Exp. 80B.
  • 15:00 FOMC Member Daniel Tarullo Speaks.
  • 17:00 US 30-year Bond Auction.
  • 18:00 US Federal Budget Balance. Exp. 42.1 billion.

For more events and lines, see the  Euro to dollar forecast.

EUR/USD Sentiment