Month: June 2009

By CountingPips.com

Today’s economic news centered around a very busy day for interest rate decisions by a few of the major central banks. The Bank of England, European Central Bank and the Bank of Canada all decided to keep their respective interest rates at present levels.

The Bank of England announced the decision to hold its interest rate at its lowest standing in the bank’s history at 0.50 percent as widely expected. The BOE had last reduced its interest rate by 50 basis points on March 5th and also cut its rate by the same amount in each of January and February. The short bank statement said today that its members “voted to continue with its programme of asset purchases totalling £125 billion” that was announced on March 5th.

The European Central Bank held its interest rate today at its lowest standing in the banks history after a rate reduction last month.  The ECB reduced its interest rate by 25 basis points on May 7th to its current level of 1.00 percent. The ECB also had reduced the rate in April by 25 basis points and by 50 basis points in March.

Jean-Claude Trichet, the President of the ECB, commented on the economy in his press conference today saying that, “Reflecting the impact of the financial market turmoil, and in particular a sharp fall in global demand and trade, economic activity weakened considerably in the first quarter of 2009. According to Eurostat’s first estimate, economic activity in the euro area contracted by 2.5% quarter on quarter, after a decline of 1.8% in the fourth quarter of 2008. This will have a significant negative impact on the average growth rate for 2009. However, more recently, there have been improvements in survey data, albeit at very low levels.”

Trichet said the ECB had revised downwards its growth projections for the eurozone and that, “annual real GDP growth will range between -5.1% and -4.1% in 2009 and between -1.0% and 0.4% in 2010.” Trichet also said that the  decision announced last month for the ECB to buy euro-denominated covered bonds was going forward in July with the bank purchasing 60 billion euros worth of bonds.

The Bank of Canada held its interest rate at 0.25 percent today and said again that it may hold the rate there for over a year. Today’s rate hold was expected by market forecasts and follows a rate reduction of 25 basis points on April 21st.  The BOC has lowered the interest rate by 425 basis points since December 2007 to its present record low level.  The BOC said that the interest rate will likely stay at 0.25 percent until the end of the second quarter of 2010 depending on the outlook for inflation as the BOC targets 2 percent inflation.

The BOC statement commented on the Canadian economic situation and its currency saying, “In recent weeks, financial conditions and commodity prices have improved significantly, and consumer and business confidence have recovered modestly. If the unprecedentedly rapid rise in the Canadian dollar (which reflects a combination of higher commodity prices and generalized weakness in the U.S. currency) proves persistent, it could fully offset these positive factors.”

The next BOC rate decision is scheduled for July 21st.

By Fast Brokers – Gold fell sharply yesterday, crashing below our 2nd tier downtrend line on rising volume as the Dollar appreciated strongly across the board.  However, although the losses in gold were large, the volume didn’t reach too significant of levels on our 4 hour chart.  Regardless, investors should take note and adjust their strategies accordingly.  The precious metal is presently being denied by our 2nd tier downtrend line as price tries to recover Wednesday’s losses.  With the GBP/USD and EUR/USD both declining on large volume, we wouldn’t be surprised to see more near-term losses in gold.  On the bright side, the precious metal has our 1st tier uptrend line and the $950/oz psychological level to fall back on, meaning the medium-term uptrend is certainly intact.  The question becomes whether the S&P futures can hold onto their 2nd tier uptrend line.  If not, we could witness another near-term contraction in U.S. equities.  Investors should keep in mind gold and equities are exhibiting a positive correlation these days.  In all, gold’s bullish psychology has been dented, but the medium-term uptrend is far from lost even if we see more near-term losses.

Fundamentally we find resistances of $972.34/oz, $975.81/oz, $978.11/oz, $980.56/oz, and $984.51/oz.  To the downside, we see supports of $970.35/oz, $967.81/oz, $964.89/oz, $962.50/oz, and $960.47/oz. Gold is currently trading at $972.30/oz.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers – The Cable is pulling back on rising volume along with the EUR/USD, raising a red flag as far as the uptrend is concerned.  Hence, we could see a retracement back towards our 2nd tier uptrend line and the 1.60 level shortly.  The GBP/USD was also batted away by our 2nd tier uptrend line intraday, a negative sign fundamentally.  Weakness in the Pound comes despite a much better than expected Halifax HPI reading, not to mention the better than expected PMI reports throughout the week.  Therefore, it wouldn’t be surprising if the Cable’s weakness was short-lived.  As with the EUR/USD, the large volume to the downside is very disconcerting.  However, we should continue to witness relative strength in the Pound as long as GBP data outperforms.

The Pound has been hit along with the other major Dollar pairs after Fed Chairman Bernanke made a heavy-handed speech regarding America’s intention to protect the Dollar and unwind its aggressive monetary policy as soon as possible.  Bernanke’s rhetoric echoes that of Treasury Secretary Geithner during his visit to China.  It appears the U.S. is trying to change the psychology of investors concerning the rapid depreciation of the Dollar.  Their speeches have had a noticeable near-term impact, appreciating the Dollar across the board.  However, whether the declaration is able to dislodge the medium-term uptrend of the Cable is another question.  The current downward movement is certainly worth keeping an eye on, and investors should monitor the ability of our trend lines and psychological levels to hold.  That being said, we have a negative outlook on the Cable in the near-term, yet maintain our medium-term bullish outlook trend-wise.  If the Cable continues to pullback investors should watch for volume to dwindle before testing the waters.

Fundamentally, we find resistances of 1.6306, 1.6347, 1.6403, 1.6479 and 1.6581.  To the downside, we see supports of 1.6233, 1.6159, 1.6077, 1.6006, and 1.5950.  The 1.65 level acts as a psychological resistance with 1.60 serving as a psychological cushion.  The GBP/USD is currently exchanging at 1.6212.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers – The USD/JPY continues its gradual ascent as it gives what it can to the broad appreciation of the Dollar taking place.  Meanwhile, our 2nd tier uptrend line and 1st tier downtrend line are reaching an inflection point today.  However, we feel the inflection point with our 2nd tier downtrend line will have a more prominent impact on the currency pair since the USD/JPY continues to bounce between these trend lines.  Volume is increasing to the upside on the 4-hour, meaning we could have a retest of our 2nd tier downtrend line shortly.  As with the rest of the major Dollar pairs, investors are reacting to both a slower improvement in U.S. economic data and aggressive language from Bernanke concerning the Fed pulling in the reins on monetary policy.  Therefore, the U.S. may attempt to put a cap on debt creation and let the cards fall where they may, giving near-term strength the Dollar.  Japan released some data late Wednesday showing capital spending declined less than anticipated, though the reading was still much lower than March’s.  The better than expected capital spending number may be limiting gains in the USD/JPY today.  Regardless, we still haven’t seen a substantial breakout in the USD/JPY to the upside, giving us little reason to change our bear trend outlook.  On the other hand, the currency pair hasn’t collapsed either, giving the uptrend a glimmer of hope.

Fundamentally, we maintain resistances of 96.33, 96.90, 97.45, 97.98, and 98.66.  To the downside, we find supports of 95.82, 95.12, 94.43, 93.77, and 93.11.  The 100 level serves as a key psychological barrier with 95 acting as a psychological cushion.  The USD/JPY is currently exchanging at 96.40.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers – The EUR/USD is selling off again today following yesterday’s pullback on substantial volume.  Rising volume to the downside is an indicator that the pullback may carry some weight.  With our 1.4117 support being tested, we could see further retracement towards the psychological 1.40 level.  However, the EUR/USD also has our 1st and 2nd tier uptrend lines to the downside.  Therefore, the present pullback could still be a pattern of healthy behavior.  Although, the rising volume on weakness is certainly a cause for concern, and raises a red flag.  Hence, we recommend investors maintain a neutral stance until we see whether present supports can hold.

The current selloff comes in reaction to weaker than expected employment and services PMI data from the U.S.  More importantly, Fed Chairman Bernanke stressed the fact that the U.S. will need to limit further debt-creation and unwind the injections of liquidity as soon as possible to prevent the Dollar from experiencing a major destabilization.  In other words, the U.S. may tighten its monetary policy sooner than investors expect.  Bernanke is successfully changing the psychology of a rapidly depreciating Dollar, at least in the near term since we have seen the Dollar strengthen strongly across the board.

Speaking of central banks, the ECB met today and kept its benchmark rate unchanged at 1%.  The ECB is also standing pat on its level of liquidity injections including the 60 billion Euro purchase of covered bonds.  However, the ECB is chaotic as usual, with dissenting viewpoints surfacing from its governors concerning future monetary policy.  Therefore, the ECB meeting has left the EUR/USD with a tinge of uncertainty as always.  The EU is done with economic releases for the week, meaning the performance of the EUR/USD will likely rely heavily on the U.S. equities.  We’ll get some more important unemployment data over the next two sessions.  If the numbers disappoint, the EUR/USD’s retracement could pick up speed rather quickly.  We have a negative outlook on the EUR/USD in the near-term due to the large volume to the downside.  However, the medium-term uptrend is still alive and well.

Fundamentally, we find resistances of 1.4187, 1.4222, 1.4290, 1.4325, and 1.4374.  To the downside, we see supports of 1.4117, 1.4078, 1.4024, 1.3987, and 1.3941.  The 1.40 area serves as a psychological cushion with 1.45 acting as a psychological barrier.  The EUR/USD is currently exchanging at 1.4118.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

Source: ForexYard

The Dollar gained considerably ground in yesterday’s trading, whilst the price of Crude Oil plummeted. The question today is can this pattern be extended into end-of-week trading? The answer to this question will be determined by a number of factors, such as the U.S. Unemployment Claims release at 13:30 GMT, U.S. Federal Reserve Chairman Ben Bernanke’s speech at 12:45 GMT, and investors weighing in on the possible results of the U.S. Non-Farm Payrolls data release tomorrow.

Economic News

USD – Fed Chairman Bernanke’s Speech to Drive Dollar Volatility Today

The Dollar may rise for a second day versus the EUR on speculation of economic recovery after new data gave a mixed outlook for the services and manufacturing sectors of the U.S. economy. The USD advanced versus 10 of the 16 most-traded currencies yesterday after reports showed U.S. companies cut more jobs last month than economists forecast.

The markets are also being calmed after officials from China to Japan, India, Russia and South Korea announced that the U.S. Dollar remains the world’s main reserve currency, economists said. The greenback had advanced earlier after news reports signaled major Asian central banks are prepared to keep buying U.S. Treasuries. The U.S Dollar rose significantly to $1.4168 per EUR, from $1.4307 yesterday. The U.S. currency may strengthen to as high as $1.4050 vs. the EUR today.

In his appearance on Wednesday before the House of Representatives Budget Committee, Federal Reserve Chairman Ben Bernanke said rising U.S. debt was contributing to a spike in longer-term Interest Rates and now was the time to start working on reining in deficits. Yet the Dollar’s gains have been pretty moderate considering how much it has fallen recently. As Bernanke gave no clue as to whether the U.S. Federal Reserve would step up its purchases of government debt or mortgage-backed securities, this is likely to lead to high volatility for the Dollar in today’s trading.

As for today, Ben Bernanke’s speech about the state of the U.S. economy at 12:45 GMT is set to drive USD volatility. Additionally, the anticipated results of tomorrow’s U.S. Non-Farm Payrolls are set to play a key role in the behavior of forex traders today.

EUR – ECB Interest Rate Decision in the Spotlight

The EUR rose to a 7 month high against the Japanese Yen on Wednesday. However, the EUR/JPY went bearish in late trading on Wednesday to close lower at 136.22 Yen per EUR. Against the U.S Dollar the EUR also weakened after Finland’s Finance Minister said EU countries need bank stress tests to regain financial market trust and jolt them out of the worldwide recession.

The EUR slipped against the Dollar to the$1.4168 level yesterday, down from $1.4307, as currency traders shrugged off fresh economic data for the 16-nation Euro-Zone. The European currency declined after the European Union’s Statistics Office reported Gross Domestic Product (GDP) in the Euro-Zone fell 2.5% in the 1st quarter. It was the largest economic contraction since the data was first compiled in 1995. The British Pound depreciated as much as 2% against the USD to $1.6263, the biggest intraday drop since March 9, when it tumbled 2.5%.

Meanwhile traders are braced for decisions on Interest Rates from the European Central Bank (ECB) and the Bank of England (BoE) today. The European Central Bank is expected to keep its target lending rate at 1% when it announces its decision at 11:45 GMT. The Bank of England is expected to keep its benchmark rate at 0.5% at its announcement at 11:00 GMT.

JPY – Yen Hits 7 Month Low vs. EUR

The Japanese Yen weakened against the EUR and the Dollar after Fitch Ratings reiterated its confidence in the U.S. and U.K.’s AAA ratings, damping demand for Japan’s currency as a refuge from the global financial crisis. However, the JPY recovered in late trading to finish up by 60 pips vs. the EUR to close at 136.22. The JPY dropped to 96.15 per Dollar from 95.63.

Investors are now wondering if the JPY will continue to gain ground against the EUR and Pound in today’s trading. It is important to take into account that this may only continue if the leading economies led by the U.S. publish predominantly positive economic data today. The result of this would help reduce demand for the safe-haven JPY. In the meantime traders are advised to open up their JPY trades ahead of the Euro-Zone and British Interest Rate decisions in the coming hours.

Crude Oil – Crude Tumbles 3% on U.S. Inventory Data

Crude Oil prices declined Wednesday by about 3.5%, to $66.15 a barrel, pulling back after government data showed an unexpected increase in inventories last week. The Energy Information Administration reported that U.S. commercial Crude Inventories for the week ending May 29 rose to 366 million barrels, up 2.9 million barrels. Crude Oil was also pushed lower by a bullish U.S Dollar.

Despite Wednesday’s weakness, Oil prices have surged 60% over the last 3 months. Analysts state that Oil has surged in recent weeks on speculation and a weak Dollar, not on actual demand. This was apparently not enough to hold the recent bullish Oil prices, as yesterday’s inventory report underscores this.

Technical News

EUR/USD

The pair has been increasingly bullish as of late. However, yesterday’s bearishness indicated that this run now seems to have come to and end in the short-term. This is backed up by the hourly and daily chart’s Slow Stochastic. Now may be a good time to join the trend, before the pair goes bullish again.

GBP/USD

The hourly and daily chart’s Slow stochastic shows that the pair’s recent downward trend may continue, and fall below the 1.6200 mark. This is contradicted by the chart’s hourly RSI and weekly chart’s MACD. It may be a wise choice to enter the pair when the signals are clearer.

USD/JPY

The recent volatility in the pair sees the USD/JPY trading between the 95.00-96.80 levels. The 4-hour and weekly chart’s oscillators indicate that this volatility is likely to continue. Additionally, the daily chart signals that yesterday’s bullish trend may continue. Going long with tight stops may be a preferable strategy today.

USD/CHF

The pair’s recent bearish trend seems to have lost steam as the USD/CHF approached the 1.0750 level yesterday. The 4-hour, daily, and weekly RSI indicates that a short-medium term bullish correction might take place. Entering the trend now may be a wise choice today, as the pair continues to gain momentum.

The Wild Card – Crude Oil

The price of Crude Oil has risen 60% in the past 3 months. However, Crude tumbled over 3% yesterday to $66.15. The 4-hour chart’s RSI and MACD support a continuation of the bearish trend in the short term. Going short on Crude may turn out to be a wise choice today, as the forex market continues to impact the price of Crude.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By GCI Fx Research

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The euro depreciated vis-à-vis the U.S. dollar today as the single currency tested bids around the US$ 1.4110 level and was capped around the US$ 1.4335 level.  Profit-taking ensued following several days of U.S. dollar selling pressure that stemmed from growing concern the U.S.’s fiscal deficits are expanding too rapidly.  Federal Reserve Chairman Bernanke testified and said “Maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance…Unless we demonstrate a strong commitment to fiscal sustainability in the longer run, we will have neither financial stability nor healthy economic growth… Certainly, our economy and financial markets face extraordinary near-term challenges, and strong and timely actions to respond to those challenges are necessary and appropriate.”  Kansas City Fed President Hoenig was on the tape late in the day saying “If we fail to bring policy into balance, we will have significant inflationary pressure.”  U.S. Treasury yields have backed up significantly in recent weeks, possibly signifying the market’s pessimism over the perilous state of U.S. finances.  Data released in the U.S. today saw May ADP private-sector employment off 532,000, worse than April’s 491,000 decline.  Also, the May U.S. ISM non-manufacturing index was up nominally to 44.0 from 43.7 in April.  Additionally, April new factory orders were up 0.7% m/m and off 22.8% y/y with the ex-transportation component up 0.1% m/m and off 22.1% y/y.  In eurozone news, the European Commission is working on a proposal to allocate €19 billion to create new jobs.  EMU-16 producer prices declined for their ninth consecutive month in April, off 1.0% m/m and 4.6% y/y.  Moreover, EMU-16 GDP was unrevised at -2.5% q/q in Q1.  Euro bids are cited around the US$ 1.3435 level.

¥/ CNY

The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥96.40 level and was supported around the ¥95.35 level.  Bank of Japan Policy Board member Kamezaki indicated there’s a greater chance the Japanese economy will perform worse-than-expected instead of better-than-expected.  Still, Kamekazi reported the loose monetary conditions could result in the economy overheating.  BoJ officials will likely keep monetary policy unchanged for the foreseeable future.  Finance minister Yosano yesterday reported the economy likely hit bottom in Q1 and Kamekazi today warned Japan’s consumer price index could decline even more sharply in the summer, possibly as much as 2%.  The Nikkei 225 stock index climbed 0.38% to close at ¥9,741.66.  U.S. dollar offers are cited around the ¥104.15 level.  The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥135.30 level and was capped around the ¥138.00 figure.  The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥155.70 level while the Swiss franc moved lower vis-à-vis the yen and tested bids around the ¥89.15 level. In Chinese news, the U.S. dollar strengthened vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8299 in the over-the-counter market, up from CNY 6.8298.

Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

By CountingPips.com

Oanda, a popular forex broker, has added trailing stop losses to its trading platform this week.  Oanda is a popular forex broker for its no minimum deposit feature and continuous interest rate calculation method. Trailing stop losses have been a much requested feature by users of the Oanda FxTrade platform and has finally been implemented as a trading feature.

Some Trailing Stop Loss Resources:

A short tutorial on using Oanda’s trailing stops can be found here at About.com.

More on using trailing stop losses can be seen here at World Currency Watch.

The Australian economy grew in the first quarter of 2009 after decreasing for the first time in eight years in the fourth quarter of 2008 according to a release today by the Australian Bureau of Statistics. The GDP report showed that the Gross Domestic Product increased by 0.4 percent in the January to March quarter after declining by a revised 0.6 percent in the October to December 2008 quarter and averted a technical recession of two straight quarterly declines in GDP. The fourth quarter GDP was the lowest quarterly reading since the December of 2000 quarter when the GDP contracted by 0.8 percent. On an annual basis, the GDP also grew by 0.4 percent over the first quarter of 2008 following a revised annual growth rate of 0.8 percent in the fourth quarter.

Economic forecasts had expected that the GDP growth would fall by 0.2 percent for the first quarter and decline by 0.4 percent on an annual basis.

Contributing positively to the GDP increase for the quarter was an increase in exports by 0.6 percent while household consumption expenditure increased by 0.3 percent. Excluding the farming sector, the GDP increased by 0.5 percent for the first quarter.

Today’s GDP release comes a day after the Reserve Bank of Australia decided to hold its interest rate steady at 3.00 percent for the second consecutive month. The RBA had shaved off 4.25 percentage points from the official cash rate since September 2008 to help fight a slowing Australian economy amid the global economic slowdown.

By Fast Brokers

The EUR/USD hit solid resistance in the 1.43 area yesterday as we anticipated, and has pulled back below 1.4222 resistance.  Today’s retreat is accompanied by declining volume, indicating the move may be one of consolidation carrying little weight.  Yesterday’s trend line inflection point was followed by a pop, but no fundamental movement.  However, we wouldn’t be surprised to see the inflection move lag a day or two, so investors should be on their toes.  If the EUR/USD can climb above 12/29 highs and our 1.4374 resistance we could witness another near-term breakout.  As for the downside, if our 1.4117 support doesn’t hold we could witness a retracement towards 1.40.  Investors shouldn’t be too discouraged by consolidation since the medium-term downtrend lines were laid to rest a while ago.

Naturally, investors are highly anticipating Thursday’ ECB news conference.  While the central bank is expected to hold its benchmark rate at 1%, the ECB has been prone to surprise investors in an effort to impact the Euro.  The investment world will be paying close attention to how Trichet addresses the ECB’s purchase of covered bonds, and whether the EU plans to venture into more extensive alternative liquidity measures, such as quantitative easing.  The EU continues to have lingering economic problems, likely due to the scattered composition of the union.  The relatively mixed performance of the EU economy has led to a comparatively weak appreciation of the Euro against the Dollar.  The EUR/GBP continues its freefall, and it seems there’s more room to go on the downside.  Regardless, the EUR/USD is reaping the rewards of a return to a pre-crisis economy, or a very weak Dollar and pricey crude.

Some heavily-weighted U.S. economic data will be hitting the wires today, including the ADP Non-Farm Employment Change, ISM Non-Manufacturing PMI, Factory Orders and weekly Crude Oil Inventories.  Therefore, volatility could kick in pretty quickly.  The S&P and crude futures are drifting lower this morning, indicating a synchronized pullback.  However, we wouldn’t be surprised to see the weakness turn around quickly, especially if today’s economic data should beat analyst expectations.  We maintain our bullish outlook trend-wise on the EUR/USD until further notice.

Fundamentally, we maintain our resistances of 1.4222, 1.4290, 1.4325, 1.4374, and 1.4432.  To the downside, we hold our supports of 1.4187, 1.4117, 1.4078, 1.4024, and 1.3987.  The 1.40 area serves as a psychological cushion with 1.45 acting as a psychological barrier.  The EUR/USD is currently exchanging at 1.4201.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.