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

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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.

EUR USD Chart March 8

  • 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.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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