EUR/USD managed to settle on high ground after the QE2 was announced. Will it march on, or retreat? Here’s a quick update on technicals, fundamentals and community trends.
EUR/USD holding settling at high ground.
EUR/USD Technicals
- Asian session: EUR/USD traded in a narrow range between 1.41 to 1.4150
- Current Range between 1.4080 to 1.4150
- Further levels in both directions: Below, 1.4080, 1.4030, 1.3950, 1.3830, 1.37, and 1.3637. Above 1.4150, 1.4217, 1.4450 and 1.4580.
- 1.4217 next big challenge after QE2.
- 1.4030 conquered – serves as important support.
EUR/USD Fundamentals
All times are GMT. Most important events emphasized.
- 12:30 US Unemployment Claims. Exp. 437K.
- 12:30 US Prelim Nonfarm Productivity. Exp. +0.9%.
- 12:30 US Prelim Unit Labor Costs. Exp. +0.8%.
- 12:45 European rate decision. Exp. unchanged at 1%.
- 13:30 ECB president Jean-Claude Trichet speaks after rate decision.
EUR/USD Sentiment
- QE2 in the US was announced and hurt the dollar across the board. The echoes will continue to be heard today, and for many days. Profit taking could occur.
- Irish debt issues are becoming a problem once again. This could erupt as a full-blown crisis.
- Unemployment claims serve as the last hint towards tomorrow’s Non-Farm Payrolls. All the signs have been positive so far.
- Currensee Community: 53% are short, 47% are long. These are 1087 open positions in real accounts trading this pair at the moment. Is the community seeing the dollar escape the bearish trend with QE2?
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