By Fast Brokers – The EUR/USD was rejected by its psychological 1.50 level once again, and the currency pair is fluctuating between our 2nd tier uptrend and downtrend lines as activity wanes in advance of the Thanksgiving holiday. Today’s EU data releases were all positive with Germany’s Ifo Business Climate and EU Industrial New Orders topping analyst expectations. The EUR/USD strengthened following the EU releases, but this morning’s U.S. econ data is keeping the currency pair in check. U.S. Prelim GDP and the S&P/CS HPI Index data all came in weaker than anticipated and we are presently awaiting the CB Consumer Confidence number. However, even if the CB number tops estimates, the sluggish GDP data may weigh on the markets. On a positive note, the combination of positive EU and negative U.S. data is providing the Euro with a relative strength, as highlighted by the present performance of the EUR/GBP. However, it seems the S&P futures may struggle with 1100 again today due to the less than stellar econ data from the U.S. Therefore, the EUR/USD may be hard pressed to break through its topside barriers should U.S. equities not cooperate.
Technically speaking, the EUR/USD still faces our 2nd tier and 3rd tier downtrend lines, which run through October and November highs, respectfully. Furthermore, the EUR/USD has to deal with its highly psychological 1.50 zone. As for the downside, the EUR/USD does have multiple uptrend lines serving as technical cushions along with 11/20 lows. Therefore, quite a few technical cushions and barriers are waiting nearby. Hence, further consolidation may not be out of the question.
The EU will be relatively quiet on the data front tomorrow with only the release of the GfK German Consumer Climate number. Therefore, the EUR/USD’s performance may rely more upon the S&P’s reaction to today’s data along with tomorrow’s Durable Goods Orders and New Home Sales data releases. Meanwhile, activity may begin to wind down as investors clock out early for the Thanksgiving holiday. However, the U.S. does have some important data releases on deck for tomorrow, meaning that the potential for volatility remains.
Present Price: 1.4979
Resistances: 1.4983, 1.4998, 1.5021, 1.5036, 1.5051, 1.5070, 1.5088
Supports: 1.4963, 1.4952, 1.4936, 1.4918, 1.4902, 1.4882, 1.4859
Psychological: 1.50, November Highs and Lows
Market Commentary provided by Fast Brokers.
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