EUR/USD Mar. 8 – Falling Back After Failed Breakout

EUR/USD couldn’t break to higher ground and is now retreating within the range. Will the debt crisis take over the Mid-East crisis? Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD Technicals

• Asian session:  Quiet session. Euro/Dollar fell to support at 1.3950 and bounced back.
• Current range – 1.3950 – 1.4030.

• Further levels in both directions: Below 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:  1.4030, 1.4160, 1.4282, 1.44
• While the round number of 1.40 is eyed by many, real resistance is only at 1.4030.
• Key support is at 1.3860, which was the previous peak of 2011.

Euro/Dollar in narrow range under resistance – click on the graph to enlarge.

EUR/USD Fundamentals –

• 10:00 Axel Weber talks.
• 11:00 German Factory Orders. Exp. +2.6%.
• 15:00 US IBD/TIPP Economic Optimism. Exp. 51.8 points.

* All times are GMT.

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

EUR/USD Sentiment

• The prices of oil retreated from their highs, although the Middle East is still troubled. The  ongoing battles in the oil dispatching city of Ras Lanuf in Libya draw the world’s attention, as well as Saudi protests.
• Bailout for Portugal – There are growing talks that Portugal will need to take a bailout, as yields are above 7% for too much time. Portugal denies, but the  deadline is getting closer. Yields are currently at 7.55%.
• US employment figures were good – unemployment dropped below 9% and it seems that the economy is gradually moving forward.
• Greece received a significant downgrade from Moody’s – three notches. Despite this bad news, the oil prices continue, at least for now, to weigh on the dollar.

Currensee Community: 62% are long , 38% are short. These are 1574 open positions in real accounts trading this pair at the moment.