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EUR/USD opened the week with a significant fall, returning to the frustrating pre-QE2 fall. Does this signal a bigger drop coming?  Here’s a quick update on technicals, fundamentals and community trends.

euro dollar November 8

Euro/Dollar falling

EUR/USD Technicals

  • Asian session:  EUR/USD opened with a push higher to 1.4080 but fell quickly in a very active session.
  • Current Range between 1.3950 to 1.4030.
  • Further levels in both directions: Below, 1.3950, 1.3830, 1.37, and 1.3637.  Above  1.4030, 1.4030, 1.4160, 1.4217, 1.4280, 1.4450 and 1.4580.
  • 1.3950 pivotal point once again.
  • 1.4217 significant resistance above.

EUR/USD Fundamentals

All times are GMT. Most important events emphasized.

  • 7:00 German Trade Balance. Exp. +13.2 billion.
  • 9:30 European Sentix Investor Confidence. Exp. 10.1 points.
  • 11:00 German Industrial Production. Exp. +0.6%.
  • 16:30 US FOMC member James Bullard talks.
  • 20:30 US FOMC member Kevin Warsh talks.

EUR/USD Sentiment

  • QE2 has a stronger effect on commodity currencies than the majors. Profit taking is still in play.
  • Irish debt issues are becoming a problem once again. This could erupt as a full-blown crisis. According to one report, Ireland has only up to December 7th to convince investors about its stability.
  • Non-Farm Payrolls gave a boost to the dollar, and will still have an impact now, at the beginning of the week.
  • Tensions towards the G-20 summit in the upcoming weekend are also on the agenda, but there’s a small chance of any agreement reached.
  • Currensee Community: 53% are long, 47% are short. These are 1097 open positions in real accounts trading this pair at the moment. Is the community seeing the dollar escape the bearish trend with QE2?

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free..