EUR/USD opened the week with a significant fall, returning to the frustrating pre-QE2 fall. Does this signal a bigger drop coming?  Here’s a quick update on technicals, fundamentals and community trends.
Euro/Dollar falling
EUR/USD Technicals
- Asian session: Â EUR/USD opened with a push higher to 1.4080 but fell quickly in a very active session.
- Current Range between 1.3950 to 1.4030.
- Further levels in both directions: Below, 1.3950, 1.3830, 1.37, and 1.3637. Above  1.4030, 1.4030, 1.4160, 1.4217, 1.4280, 1.4450 and 1.4580.
- 1.3950 pivotal point once again.
- 1.4217 significant resistance above.
EUR/USD Fundamentals
All times are GMT. Most important events emphasized.
- 7:00 German Trade Balance. Exp. +13.2 billion.
- 9:30 European Sentix Investor Confidence. Exp. 10.1 points.
- 11:00 German Industrial Production. Exp. +0.6%.
- 16:30 US FOMC member James Bullard talks.
- 20:30 US FOMC member Kevin Warsh talks.
EUR/USD Sentiment
- QE2 has a stronger effect on commodity currencies than the majors. Profit taking is still in play.
- Irish debt issues are becoming a problem once again. This could erupt as a full-blown crisis. According to one report, Ireland has only up to December 7th to convince investors about its stability.
- Non-Farm Payrolls gave a boost to the dollar, and will still have an impact now, at the beginning of the week.
- Tensions towards the G-20 summit in the upcoming weekend are also on the agenda, but there’s a small chance of any agreement reached.
- Currensee Community: 53% are long, 47% are short. These are 1097 open positions in real accounts trading this pair at the moment. Is the community seeing the dollar escape the bearish trend with QE2?
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