EUR/USD Nov. 2 – Choppy Trading Continues

EUR/USD is back to the frustrating range, just under the pivotal line. Will it improve positions before QEII? Here’s a quick update on technicals, fundamentals and community trends. We have important events already today, on Monday.

EUR/USD around settled above 1.3950

EUR/USD Technicals

• Asian session:  EUR/USD traded around 1.3900 during most of the session.
• Current Range between 1.3830 and 1.3950.
• Further levels in both directions: Below, 1.3830, 1.37, 1.3637, 1.3530, 1.3430 and 1.3333.  Above  1.3950, 1.4030, 1.4217, 1.4450 and 1.4580.
• 1.4030 proved to be a strong line in the past, but EUR/USD couldn’t hold on to it.
• 1.3830 important line below.

EUR/USD Fundamentals

All times are GMT. Most important events emphasized.

• 12:30 European Final Manufacturing PMI. Exp. 54.1 points.

EUR/USD Sentiment

• Congressional elections in the US are expected to result in a shift of power towards the Republicans in Congress. The situation isn’t so easy for the Obama administration, so things aren’t expected to dramatically change.
• Debt issues never went away, but the market disregards them. Note that the Greek prime minister said that debt might be restructured, creating anger within the European Union.
• The inevitable second round of quantitative easing in the US is a done deal, but will probably be of a lesser scale than thought earlier. – comments regarding the size will have a strong impact on EUR/USD. This is the main theme this week.
• Currensee Community: 52% are short, 48% are long. This is a change towards shorts. These are 116 open positions in real accounts trading this pair at the moment.

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