EUR/USD is struggling in a lower range and marked a double bottom. Will it lose the critical support line? Here is a quick update on fundamentals, technicals and community trends.
EUR/USD supported twice (red line). Click to enlarge.
EUR/USD Technicals
- Asian session: Â Narrow range around 1.2722, and then another fall towards 1.2660.
- Current Range is between 1.2605 to 1.2722.
- Further levels: Below,  1.2610, 1.2460, 1.2330 and 1.2150. Above  1.2770, 1.2840, 1.2930, 1.30, and 1.3110.
- Uptrend channels broken: EUR/USD traded in a main uptrend channel and a secondary one. Both were broken earlier this week, and are becoming irrelevant.
- Double bottom at 1.2660: This line also provided support last week. The double bottom seen in the past few days makes it a strong support line now.
EUR/USD Fundamentals
All times are GMT. Most important events emphasized.
- 6:00: German Final CPI. Exp. 0.0%. Actual 0.0%. OK.
- 8:00: ECB Monthly Bulletin. No big surprises.
- 12:30 US Unemployment Claims. Exp. 470K.
- 12:30: US Trade Balance. Exp. -47.4 billion.
- 14:00: ECB member Axel Weber speaks. Yesterday he hurt the Euro. Will he do it again?
EUR/USD Sentiment
- The reason for the big collapse earlier this week – European debt issues, with a strong focus on Ireland, made a “comebackâ€.
- Market is drifting between “risk on†and “risk off†with a tendency to “risk onâ€. With “risk offâ€, 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.
- With the double bottom at 1.2660, it now became the stronghold on the downside.
- News from Ireland and Spain regarding debt will impact the Euro.
- Watch out for the US jobless claims. A rise above 500K could rock the markets.
- Currensee Community: 53% are Short, 47% are long, down from 57:43 yesterday. These are 966 open positions in real accounts trading this pair at the moment.
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