EUR/USD got out of the perfect range and dipped lower, retreating quickly. Today is a rather light day in terms of events. Will it lose the critical support line? Here is a quick update on technicals, fundamentals and community trends.
EUR/USD supported twice (red line) at 1.2660, twice resisted at 1.2770 and dipped lower. Click to enlarge.
EUR/USD Technicals
- Asian session: Â A dip lower to 1.2640 and a retreat back to the range.
- Current Range is between 1.2660 to 1.2770.
- 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 and left behind: EUR/USD traded in a principal uptrend channel and also 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.
- 6:45: French Industrial Production. Exp. 0.8%.
- 14:00: US Wholesale Inventories. Exp. +0.4%.
EUR/USD Sentiment
- The reason for the big collapse earlier this week – European debt issues, with a strong focus on Irish banks, 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.
- Friday always brings action, as traders rush to close positions before the weekend.
- Currensee Community: 55% are Short, 45% are long, up from 57:43 yesterday. These are 1003open positions in real accounts trading this pair at the moment.
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