EUR/USD has moved up one trading range and enjoys better technical behavior as some stability has arrived to the markets. Has the dollar rally come to an end? Has the euro sell-off come to an end? These are certainly open questions. The calendar remains light but trading remains exciting.
Here’s a quick update on technicals, fundamentals and sentiment moving the pair.
- Asian session: The pair consolidated in the higher range.
- Current range:Â 1.2920 to 1.2955
Further levels in both directions:
- Below: 1.2920, 1.2865, 1.2840, 1.28 and 1.2750.
- Above: 1.2955, 1.30, 1.3050, 1.31 and 1.3175.
- The new low of 1.2920 is minor support on the way to 1.2840.
EUR/USD Fundamentals
- 5:30Â French Final Non-Farm Payrolls. Exp. +0.1%, actual +0.1%.
- 6:45Â French Industrial Production. Exp. -0.4%. Actual +0.2%.
* All times are GMT.
For more events and lines, see the EUR/USDEUR/USDEUR/USDEUR/USDEUR/USD.
EUR/USD Sentiment
- Better behavior: The recent downfall in the euro has contributed to higher volatility and also to higher predictability: trading ranges are respected in a better manner and more pips can be made. Read more:Â EUR/USD enjoys higher volatility, improved technical behavior.
- Greenback strength: Despite the recent bounce, the US dollar seems strong across the board. It continued breaking records against the yen and finally toppled the Australian dollar which seemed strong so far. This come despite unexciting JOLTS data. Will the strength of the dollar return to weigh on the euro?.
- The full Draghi show: Almost a week away from the big drama that hit the euro, the echoes are still heard questions also arise. What will be the size of the ABS program? The ECB would need a big ABS market in order to succeed, and that isn’t certain. The president of the ECB will be speaking tomorrow.
- Ukraine news fading out: The EU agreed on new sanctions against Russia but decided to wait with them. This is good news for the euro, as trade relations with Russia are important to the European economies. Finally some change on the ground: a ceasefire agreed upon on Friday is being occasionally violated, but in general it is still on. There is suspicion on all sides, so new sanctions are still on the cards. .
In our latest podcast, we run down the huge ECB decision among other topics.
Download it directly here.
