EUR/USD Nov. 23 – Falls to Low Support on Crisis

Euro/Dollar bounced off 1.3530

EUR/USD Technicals

• Asian session:  EUR/USD gradually dropped from 1.3640 downwards.
• Current Range between 1.3530 to 1.3640.
• Further levels in both directions: Below 1.3530, 1.3430, 1.3334, 1.3267, 1.3114 and 1.2920.  Above   1.3640, 1.37, 1.3830,  1.3950, 1.4030, 1.4030, 1.4160, and 1.4217.
• 1.3440 significant lower point – this was the lowest in two months. 1.3530 has to be taken first.
• 1.3830 significant higher point.

EUR/USD Fundamentals

All times are GMT. Most important events emphasized.

• 7:00 German Final GDP. Exp. +0.7%. Actual +0.7%.
• 8:00 French Flash Manufacturing PMI. Exp. 55.2.
• 8:00 French Flash Services PMI. Exp. 55.
• 8:30 German Flash Manufacturing PMI. Exp. 57.
• 8:30 German Flash Services PMI. Exp. 55.9.
• 9:00 Flash Manufacturing PMI. Exp. 54.4.
• 9:00 Flash Services PMI. Exp. 53.2
• 13:30 US GDP. Exp. +2.3%.
• 15:00 US Existing Home Sales. Exp. 4.5 million.
• 19:00 US FOMC Meeting Minutes

EUR/USD Sentiment

• The Irish government seems to have lost support to pass the plan – putting a big doubt over the feasibility of the bailout plan.
• It’s also important to note headlines from Portugal, which is already marked as the next domino.
• North Korea fired shells at the south. This also weighs on the Euro – risk aversion.
• Chinese hike of the reserve requirement doesn’t have an impact on the Euro. A hike in the Chinese interest rate is what’s needed to take the Euro down.
• An upwards revision of US GDP will boost the US dollar.
• Currensee Community: 52% are long , 48% are short- yesterday we had more shorts. These are 1257 open positions in real accounts trading this pair at the moment.

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