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EUR/USD  is trading on high ground above 1.28 and below the top resistance line of 1.2850. The pair is  mostly moving on weakness in the US dollar, which continues to slide despite some hawkish comments from members of the Fed. US data begins coming today with existing home sales. In Europe, the same old worries about growth continue.

Here’s a quick update on technicals, fundamentals and sentiment moving the pair.

  • Asian session: The pair got comfortable above 1.28 and eventually shot higher.
  • Current range:  1.28 to 1.2850

Further levels in both directions:

EURUSD October 21 2014 technical euro dollar forex analysis fundamental outlook sentiment

  • Below:  1.2750, 1.27, 1.2660, 1.26, 1.2570 and 1.25.
  • Above:  1.28, 1.2850, 1.2920 and 1.30 and 1.31, which is targeted by one bank.
  • 1.2750 is now a pivotal line within the range.
  • 1.2850 is the top line and  1.2660 returns to support.

EUR/USD Fundamentals

  • 14:00 US Existing home sales. Exp. 5.11 million.  

* All times are GMT.

For more events and lines, see the  Euro to dollar  forecast.

EUR/USD Sentiment

  • To end QE or not to end QE: What seemed like a done deal is not necessarily so. The usually optimistic and bullish James Bullard suggested that the Fed would not end its QE program in its  upcoming meeting but rather continue it due to worries about Europe. This hit the US dollar. Later on, other FOMC members, some of them quite dovish, did reaffirm the end of QE. Markets will probably be nervous towards the October 29th meeting.
  • Deal between Germany and France: Reports in various papers say that  the two core countries are negotiating a  pact in which Germany would approve the French deficit in return for very specific conditions. This eases the tensions.
  • Stress tests coming up: The next big event for the euro-zone is the release of the stress test results for banks on Sunday. While the Bank makes an effort to keep it secret, we can expect some leaks. Will  some banks fail the tests? This is needed for credibility, but could also cause worries.
  • A-OK Chinese GDP: The world’s No. 2 economy, China, printed a 7.3% y/y growth rate, slightly better than expected. This is a sigh of relief for Europe and Germany in particular, that need the Chinese markets.

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