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EUR/USD is making a small recovery after the big blow. Will we see a fresh downfall after the break, or stabilization? Here’s a quick update on technicals, fundamentals and community trends.

eur usd forecast october 20 2010

EUR/USD struggling under 1.3830. Click to enlarge.

EUR/USD Technicals

  • Asian session:  Active session saw EUR/USD bottoming out at 1.37 before recovering towards 1.38..
  • Current Range between 1.3775 and 1.3830
  • Further levels in both direcstions: Below,  1.3775, 1.3637, 1.3530, 1.3430 and 1.3333.  Above   1.3830, 1.3950, 1.4030, 1.4120, 1.42, 1.4450 and 1.4580.
  • EUR/USD is took a breather after the big fall.

EUR/USD Fundamentals

All times are GMT. Most important events emphasized.

  • 6:00 German PPI. Exp. 0.2%. Actual 0.3%. Slightly Euro positive.
  • 18:00 US Beige Book. Could supply hints for Fed Meeting.

EUR/USD Sentiment

  • Debt issues never went away, but the market disregards them. Maybe they will get more attention now as risk aversion returned.
  • 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, but also fully priced in the dollar’s weakness – now the dollar retraces.
  • 1.3832 key level on the upside.
  • 1.3637 key level on the downside.
  • Currensee Community: 54% are long, 46% are short, up from 53:47 yesterday. These are 1094open positions in real accounts trading this pair at the moment.

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