EUR/USD Technicals

• Asian session: EUR/USD had an active session and it broke above 1.3180..
• Current Range between 1.3180 and 1.3267.
• Further levels in both directions: Below 1.3180, 1.3080, 1.30, 1.2920, 1.2722, 1.2587. Above 1.3267, 1.3334, 1.3576, 1.37, 1.3786, 1.3950 and 1.4030.
• 1.3080 important support below
• 1.3440 is important resistance above and remains as such after a breakout attempt failed.

EUR/USD Fundamentals -

• 14:00 US S&P/CS Composite-20 HPI. Exp. -0.1%.
• 15:00 US CB Consumer Confidence. Exp. 56.3 points.
• 15:00 US Richmond Manufacturing Index. Exp. 11 points.

* All times are GMT.

For more events later in the week, see the EUR/USD forecast.

EUR/USD Sentiment

• The Chinese rate hike risks global growth and triggered risk aversive trading, but at least for now, the effect is fading out.
• Irish banks are still troubled and may draw weigh on the Euro.
• France is danger of suffering a credit rating downgrade – France is Europe’s second largest economy. A downgrade or a warning will send the Euro way down.
• Spanish bond yields have stabilized at high levels, around 5.50%
• Trading volume isn’t as thin as yesterday, but it’s still low in comparison to regular days during the year.
• Currensee Community: 50% are long , 50% are short. These are 1270 open positions in real accounts trading this pair at the moment.

• Asian session: EUR/USD rose and bounced under 1.3180..
• Current Range between 1.3080 to 1.3180.
• Further levels in both directions: Below 1.3080, 1.30, 1.2920, 1.2722, 1.2587. Above 1.3114, 1.3180, 1.3267, 1.3334, 1.3576, 1.37, 1.3786, 1.3950 and 1.4030.
• 1.3050 new lower frontier.
• 1.3440 is important resistance above and remains as such after a breakout attempt failed.
• 
  

EUR/USD Fundamentals -

No events today.

* All times are GMT.

EUR/USD Sentiment

• The Chinese rate hike risks global growth and triggered risk aversive trading. While the Aussie suffers more than the Euro, the stronger US dollar might be felt also here.
• Irish banks are still troubled and may draw weigh on the Euro.
• France is danger of suffering a credit rating downgrade – France is Europe’s second largest economy. A downgrade or a warning will send the Euro way down.
• Spanish bond yields have stabilized at high levels, around 5.50%
• China said it helped the Euro-zone during the crisis, and is trying to get closer to Europe before the US-China summit. Will they push the Euro higher? Probably not.
• Thin trading on Boxing Day means that any unexpected news will find the markets unprepared and technical lines aren’t as guarded as on normal days.
• Currensee Community: 54% are long , 46% are short. These are 1239 open positions in real accounts trading this pair at the moment.

EUR/USD Sentiment

• Portugal is under review for a downgrade.
• France is danger of suffering a credit rating downgrade – France is Europe’s second largest economy. A downgrade or a warning will send the Euro way down.
• There are fresh worries if the Irish bailout will indeed work out.
• Now, Spanish banks are under review by Moody’s.
• China said it helped the Euro-zone during the crisis, and is trying to get closer to Europe before the US-China summit. Will they push the Euro higher? Probably not.
• US bond yields take a break – they’re not challenging new highs. This mostly affects USD/JPY, but also EUR/USD.
• Currensee Community: 50% are long , 50% are short. These are 1264 open positions in real accounts trading this pair at the moment.

FOREX, trading foreign currency

Image via WikipediaFOREX trading is all about trading foreign currency, stocks, and similar type of products. The currency of one country is weighed against the currency of another country to determine value. The value of that foreign currency is taken into consideration when trading stocks on the FOREX markets. Most countries have control over the value of that countries value, involving the currency, or money. Those who are often involved in the FOREX markets include banks, large businesses, governments, and financial institutions.

What makes the FOREX market different from the stock market?
A forex market trade is one that involves at least two countries, and it can take place worldwide. The two countries are one, with the investor, and two, the country the money is being invested in. Most all transactions taking place in the FOREX market are going to take place through a broker, such as a bank.

What really makes up the FOREX markets?
The foreign exchange market is made up of a variety of transactions and counties. Those involved in the FOREX market are trading in large volumes, large amounts of money. Those who are involved in the FOREX market are generally involved in cash businesses, or in the trade of very liquid assets that you can sell and buy fast. The market is large, very large. You could consider the FOREX market to be much larger than the stock market in any one country overall. Those involved in the FOREX market are trading daily twenty-four hours a day and sometimes trading is completed on the weekend, but not all weekends.

You might be surprised at the number of people that are involved in FOREX trading. In the years 2004, almost two trillion dollars was an average daily trading volume. This is a huge number for the number of daily transactions to take place. Think about how much a trillion dollars really is and then times that by two, and this is the money that is changing hands every day!

The FOREX market is not something new, but has been used for over thirty years. With the introduction of computers, and then the internet, the trading on the FOREX market continues to grow as more and more people and businesses alike become aware of the availablily of this trading market. FOREX only accounts for about ten percent of the total trading from country to country, but as the popularity in this market continues to grow so could that number.

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• General Elements Of Forex Trading (forextradingspeculation.wordpress.com)