EUR/USD October 4 – Losing Ground Towards Support

EUR/USD is losing ground, retracing some of the huge gains it made last week. It now approaches a support line. Does this start show the way for the rest of the week? Here’s a quick update on technicals, fundamentals, and community trends.

EUR/USD after Itish decision.

EUR/USD Technicals

• Asian session:  Quiet session ranging with EUR/USD trading around 1.38. The fall came in the wake of the London session.
• Current Range between 1.37 to 1.38.
• Further levels in both direcstions: Below,  1.3530, 1.35, 1.3430, 1.3365, 1.3267, 1.3160, and 1.3110.  Above  1.3850, 1.40 1.42 and 1.4450.
• Wide uptrend channel: Uptrend resistance began on Sep. 8 and uptrend support on Sep. 13. Trading is characterized with many hours of consolidation, followed by  few hours of sharp rises.

EUR/USD Fundamentals

All times are GMT. Most important events emphasized.

• 8:30 Sentix Investor Confidence. Exp. 8.3.
• 9:00 PPI. Exp. +0.2%.
• 14:00 US Pending Home Sales. Exp. +2.8%.
• 14:00 US Factory Orders. Exp. -0.3%.
• 19:00 Federal Reserve chairman Ben Bernanke talks.

EUR/USD Sentiment

• The  big question regarding Ireland remains about the “haircut” that debt holders will have to pay. News about the size of concessions can still rock the Euro.
• Debt issues never went away, but the market disregards them. This could change this week.
• The inevitable second round of quantitative easing in the US still weighs on weakens the dollar.
• Holding on to 1.37 is important for the Euro.
• The rush to close positions on Friday always triggers lots of action.
• Pending Home Sales are the main event.
• Currensee Community: 53% are long, 47% are short. These are 1051 open positions in real accounts trading this pair at the moment.

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