EUR/USD Oct. 27 – Lost Support

EUR/USD dropped to lower ground losing an important support line. Important American releases are due today. Will Euro/Dollar drop further today?  Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD under 1.3830.

EUR/USD Technicals

• Asian session:  EUR/USD held on to 1.3830 for some time, but eventually fell.
• Current Range between 1.37 to 1.3830
• Further levels in both direcstions: Below, 1.37, 1.3637, 1.3530, 1.3430 and 1.3333.  Above  1.3830, 1.3950, 1.4030, 1.4217, 1.4450 and 1.4580.
• 1.4030 proved to be a strong line in the past, but EUR/USD couldn’t hold on to it.
• 1.3830 lost – bearish sign – 1.37 next level.

EUR/USD Fundamentals

All times are GMT. Most important events emphasized.

• Throughout the day – German CPI. Exp. +0.1%.
• 6:45 French Consumer Spending. Exp. +0.5%. Actual +1.5%.
• 8:30 M3 Money Supply. Exp. +1.4%.
• 12:30 US Durable Goods Orders. Exp. +1.7%. Core figure exp. +0.4%.
• 12:30 US New Home Sales. Exp. 300K.

EUR/USD Sentiment

• Debt issues never went away, but the market disregards them. Maybe they will get more attention, especially with budgets in Ireland and Portugal.
• The inevitable second round of quantitative easing in the US still weighs on weakens the dollar, but the size of QE also depends on economic indicators released this week. QE2 now looks imminent, but also fully priced in the dollar’s weakness – comments regarding the size will have a strong impact on EUR/USD.
• Currensee Community: 56% are short, 44% are long. Yesterday we had more longs. These are 1104 open positions in real accounts trading this pair at the moment.

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