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EUR/USD moved higher  after the release of  strong US employment numbers, as Unemployment Claims dropped to its lowest level in over two years.  The euro was  further bolstered by  speculation that the Spanish bailout may be closer following  the  credit  rating cut by S&P, which  downgraded Spain’s rating to just one notch above junk status.  There was some good economic news as well, as Euro-zone Industrial Production came in well above the forecast. Two key releases out of the US later today wrap up the trading week – PPI and the University of Michigan Consumer Sentiment. With all the difficult economic news streaming out of Europe, the EU deserves congratulations as the recipient of the 2012 Nobel Peace Prize for its critical role in uniting the European continent.

Here’s an update about technical lines, fundamental indicators and sentiment regarding EUR/USD.

EUR/USD Technical

  • Asian session: Euro/dollar was uneventful, trading in the 1.2930 range. The pair has  moved higher  up in the European session.
  • Current range: 1.2960 to 1.30.

Further levels in both directions:  

  • Below: 1.2960, 1.29, 1.2814, 1.2750, 1.2670, 1.2624, 1.2587, 1.2520 and 1.2460.
  • Above: 1.30, 1.3060, 1.3105, 1.32, 1.3290, 1.34, 1.3437, 1.3480 and 1.3540.
  • EUR/USD is testing the 1.2960 resistance line. 1.30, an important line,  is next.
  • 1.2900 has strengthened on the downside.

Euro/dollar  higher after US, European  data- click on the graph to enlarge.

EUR/USD Fundamentals

  • 9:00 Euro-zone Industrial Production. Exp. -0.4%. Actual +0.6%.
  • 12:30  US PPI. Exp. +0.8%.
  • 12:30 US Core PPI. Exp. +0.2%.
  • 13:55  US Preliminary UoM Consumer Sentiment. Exp. 78.1 points.
  • 13:55 US Preliminary UoM Inflation Expectations.
  • 16:35 US FOMC Jeffrey Lacker  Speaks.
  • 18:00 US Federal Budget Balance. Exp. +59.0B.
For more events and lines, see the Euro to dollar forecast

EUR/USD Sentiment