EUR/USD October 14 – Impressive Break Higher

EUR/USD made an impressive break above 1.40, and back above the trendline as the dollar collapses across the board. Next targets getting closer. Here’s a quick update on technicals, fundamentals and community trends.

EUR/USD breaking above trendline

EUR/USD Technicals

• Asian session:  Exciting session sees EUR/USD jump as high as 1.4097
• Current Range between 1.4030 and 1.4217.
• Further levels in both direcstions: Below,  1.3950, 1.3850, 1.38, 1.3717, 1.3650, 1.3560, 1.35, 1.3430.  Above   1.42, 1.4450 and 1.4580.
• Uptrend support reconquered: Uptrend resistance began on Sep. 8 and uptrend support on Sep. 13. Trading is characterized with many hours of consolidation, followed by  few hours of sharp rises. Note that the uptrend support line was slightly modified. Support was lost three days ago and reconquered now. Currently stands at around 1.4060.

EUR/USD Fundamentals

All times are GMT. Most important events emphasized.

• 8:00 ECB Monthly Bulletin.
• 10:00 ECB member Axel Weber speaks. He’s a hawk.
• 12:30 US Unemployment Claims. Exp. 448K.
• 12:30 US Trade Balance. Exp. -43.8 billion.
• 12:30 US PPI. Exp. +0.2%. Core PPI +0.1%.

EUR/USD Sentiment

• Debt issues never went away, but the market disregards them. Only very bad news could stop the Euro.
• The inevitable second round of quantitative easing in the US still weighs on weakens the dollar, but the size of QE depends on the current situation and especially on jobs which disappointed on Friday. QE2 now looks imminent after the meeting minutes.
• The trendline is very important.
• 1.4217 is the next level to watch.
• Currensee Community: 50% are long, 50% are short. These are 1098 open positions in real accounts trading this pair at the moment.

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