EUR/USD Mar. 2 – Stuck at Support

EUR/USD failed to break higher and fell back down to support, as risk to global growth looms. Will this support be lost? Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

• Asian session:  Quiet session sees Euro/Dollar slightly lower.
• Current range – 1.3760 – 1.3860.

• Further levels in both directions: Below 1.3760, 1.37, 1.3610, 1.35, 1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970.
• Above:  1.3860,  1.3950, 1.4030, 1.4160 and 1.4230.
• 1.3860 proved to be strong resistance.
• 1.3760 turned into a pivotal line.
• Major support is only at 1.3440.

Euro/Dollar around the 1.3760 line – click on the graph to enlarge.

EUR/USD Fundamentals –

• 10:00 European PPI. Exp. +1.1%.
• 12:30 US Challenger Job Cuts.
• 13:30 ADP Non-Farm Payrolls. Exp. +178K.
• 15:00 US Federal Reserve Chairman Ben Bernanke talks.
• 19:00 US Beige Book.

* All times are GMT.

For more events later in the week, see the  EUR/USD forecast

EUR/USD Sentiment

• Libyan civil war is still going on –  Gaddafi’s exit didn’t happen just yet. The price of oil continues to rise and this risks global growth. An intervention by NATO seems closer. Note that there is unrest also in Oman, Yemen and even in  Saudi Arabia. In Iran, opposition leaders are in jail, and the masses want their release..
• ADP will provide some indication towards Friday’s Non-Farm Payrolls. They are expected to be positive. See the NFP preview for details.
• The Irish people have spoken out – the government that signed the bailout plan has been kicked out and the new government will renegotiate the bailout program. See the analysis of how the Irish elections can weaken the Euro.
• A  bailout for Portugal is getting closer as bond yields are rising and becoming unsustainable again. They might further rise after the Irish elections.

Currensee Community: 62% are long , 38% are short. These are 1525 open positions in real accounts trading this pair at the moment.