Yohay

EUR/USD Lower on Cliff Counter-reaction

, 01-03-2013 at 05:03 AM (255 Views)

[COLOR=#444444][FONT=Arial][B]The [URL="http://www.forexcrunch.com/category/forex-weekly-outlook/eur-usd-outlook/"]EUR/USD[/URL] rally after the fiscal cliff agreement was short-lived, as the euro continues to lose ground against the dollar. The pair continues to show quite a bit of volatility. In fundamental news, Spanish and German employment figures looked very good. Spanish Unemployment Change was outstanding, posting a sharp drop of 59.1 thousand. This surprised the markets which had expected an increase of 50.3K. In Germany, the Unemployment Change indicator easily beat the estimate for the second straight month. In the US, the markets will be watching two key employment releases – ADP Non Farm Employment Change and Unemployment Claims. The other highlight is the minutes from the FOMC’s most recent policy meeting.[/B][/FONT][/COLOR]
[COLOR=#444444][FONT=Arial][B]EUR/USD Technical[/B][/FONT][/COLOR]

[LIST][*]Asian session: Euro/dollar was again active, this time dropping to a low of 1.3124, before consolidating at 1.3147. The pair has edged higher in the European session.[*]Current range: 1.3130 to 1.3180.[/LIST]
[COLOR=#444444][FONT=Arial]Further levels in both directions: [URL="http://www.forexcrunch.com/wp-content/uploads/2013/01/EUR-USD-Daily-Forecast-January-3.png"][IMG]http://www.forexcrunch.com/wp-content/uploads/2013/01/EUR-USD-Daily-Forecast-January-3-400x225.png[/IMG][/URL][/FONT][/COLOR]

[LIST][*]Below: 1.3130, 1.3110, 1.30, 1.2960, 1.2880, 1.28, 1.2750, 1.2690, 1.2624, 1.2590, 1.25 and 1.2440.[*]Above: 1.3180, 1.3240, 1.3290, 1.3350, 1.34, 1.3480 and 1.36.[*][B]1.3130 is providing weak support as the pair has lost ground.[/B][*][B]1.3180 is the next line on the upside, and could see further activity as the pair continues to fluctuate.[/B][/LIST]
[COLOR=#444444][FONT=Arial]Euro/dollar loses ground as volatility continues – click on the graph to enlarge.[/FONT][/COLOR]
[COLOR=#444444][FONT=Arial][B]EUR/USD Fundamentals[/B][/FONT][/COLOR]

[LIST][*]8:00 Spanish Unemployment Change. Exp. 50.3K. Actual -59.1K.[*]8:55 German Unemployment Change. Exp. 11K. Actual 3K.[*]9:00 Eurozone M3 Money Supply. Exp. +3.8%. Actual 3.8%.[*]9:00 Eurozone Private Loans. Exp. -0.5%. Actual -0.8%.[*]12:30 US Challenger Job Cuts.[*][B]13:15 US ADP Non-Farm Employment Change. Exp. 134K.[/B][*][B]13:30 US Unemployment Claims. Exp. 356K.[/B][*]19:00 US FOMC Meeting Minutes.[*]All Day US Total Vehicle Sales. Exp. 15.3M.[/LIST]
[COLOR=#444444][FONT=Arial]For more events and lines, see the [I][URL="http://www.forexcrunch.com/category/forex-weekly-outlook/eur-usd-outlook/"]Euro to dollar forecast[/URL][/I][/FONT][/COLOR]
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