EUR/USD Mar. 21 – Holding on to High Support

EUR/USD is holding on to its significant gains it made last week, and remains above high support as we have important events already on Monday. Will it fall from these highs or test the one year high? Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

• Asian session:  Quiet session sees EUR/USD stick above 1.4160.
• Current range – 1.4160 – 1.4282

• Further levels in both directions: Below 1.4160, 1.4030, 1.3950, 1.3860, 1.3760, 1.37, 1.3610, 1.35, 1.3440, 1.3334, 1.3267, 1.3180, 1.3080, 1.2970.
• Above:    1.4282, 1.4450, 1.4580, 1.48.
• 1.4030 now turned into important support after being broken – this is the key level to lower ones.
• 1.4282 is the highest level in a year and is eyed by many. A test of this level may be tough.

Euro/Dollar starts the week at high support – click on the graph to enlarge.

EUR/USD Fundamentals –

• 14:00 US  Existing Home Sales. Exp. 5.15 million.
• 14:00 ECB President Jean-Claude Trichet talks.

* All times are GMT.

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

EUR/USD Sentiment

• Trichet continues to boost EUR/USD:  In a speech on Friday, Trichet hinted that no change is expected with the rates. This sent the Euro higher. He’ll now have a chance to boost the Euro again
• International Currency Intervention: The G7 countries intervened to push the yen lower and aid Japan’s economy in the face of the earthquake. The  ECB, together with French and German central banks, bought a lot of EUR/JPY – more than American buys of USD/JPY – pushing EUR/USD higher..
• Libyan Airstrikes Approved: Air strikes in Libya began over the weekend and they already push the price of oil higher. This weighs on the US dollar. See a full analysis of the UN decision on Libya and the implications for oil and the dollar.
• Bailout for Portugal – The second EU Summit at the of the week is critical for the Euro. Portuguese officials warn that if the budget isn’t approved, they’ll seek a bailout.Together with the credit downgrade by Moody’s and the weak decision in the first EU Summit, this makes the bailout closer. He
  re’s a  full analysis of the EU Summit.

Currensee Community: 59% are long , 41% are short. These are 1356 open positions in real accounts trading this pair at the moment.