EUR/USD continued advancing, many hours after QE2 was announced, but is retreating towards the NFP. Will it close the week on higher ground, or will the Non-Farm Payrolls supply relief and keep the pair under resistance? Here’s a quick update on technicals, fundamentals and community trends.
EUR/USD marching forward. * Post updated 11:30 GMT.
EUR/USD Technicals
- Asian session: EUR/USD traded in a narrow range between 1.4180 to 1.4230.
- Current Range between 1.4180 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, 1.4280, 1.4450 and 1.4580.
- 1.4217 pivotal point in the aftermath of QE2.
- 1.4030 provides strong strong support.
EUR/USD Fundamentals
All times are GMT. Most important events emphasized.
- 11:00 German Factory Orders. Exp. +0.5%. Actual -4% – bad for the Euro.
- 12:30. US Non Farm Payrolls. +50K expected. Unemployment rate to remain at 9.6%.
- 13:30 US FOMC member Thomas Hoeing talks. He voted against QE2.
- 14:00 US Pending Home Sales. Exp. +3.2%.
- 17:20 US FOMC member James Bullard talks.
- 18:00 US FOMC chairman Ben Bernanke talks.
EUR/USD Sentiment
- QE2 in the US was announced and hurt the dollar across the board. The echoes will continue to be heard also 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.
- Non-Farm Payrolls big event for today. A positive number could supply relief for the dollar. Note that high volatility is expected around the event.
- Currensee Community: 55% are short, 45% are long. These are 1106 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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