EUR/USD Sep. 16- Breaking to Higher Ground

EUR/USD broke to higher ground, rising above 1.3050. The busy US calendar promises that the action will continue. Here is a quick update on technicals, fundamentals, and community trends.

EUR/USD breaking above 1.3050. Click to enlarge.

EUR/USD Technicals

• Asian session:  EUR/USD consolidated through most of the session.
• Current Range is between 1.3050 to 1.3110
• Further levels: Below,  1.2840, 1.2770, 1.2610, 1.2460, 1.2330 and 1.2150.  Above   1.3110, 1.3267 and 1.3430.
• EUR/USD now trades between the 50% and 61.8% Fibonacci retracement of the drop from 1.3334 to 1.2591.

EUR/USD Fundamentals

All times are GMT. Most important events emphasized.

• 12:30 US Unemployment Claims: Exp. 463K.
• 12:30 US PPI. Exp. +0.3%.
• 12:30 US Core PPI. Exp. +0.1%.
• 12:30 US Current Account. Exp. -124 billion.
• 13:00 US TIC Long-Term Purchases. Exp. +37.9 billion.
• 14:00 US Philly Fed Manufacturing Index. Exp. +0.9.
• 14:00 US Treasury Secretary Timothy Geithner testifies about currencies. High volatilty expected. Testimony resumes again at 18:00.

EUR/USD Sentiment

• Basel II banking accord still positively impacts the Euro. On the other hand, the debt issues never went away, and they are weighing on the common currency.
• Market is drifting between “risk on” and “risk off” with a tendency to “risk on”. With “risk off”, good US figures boost the dollar and bad ones hurt it. When risk is on, bad US figures boost the dollar. In recent days, we’ve seen more normal behavior.
• 1.2660 is a stronghold on the downside, 1.3110 on the upside – getting close now.
• Currensee Community: 56% are Short, 44% are long, up from 53:47 yesterday. Euro losing charm again? These are 1026 open positions in real accounts trading this pair at the moment.

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