By Fast Brokers – The EUR/USD is attempting to stabilize and we notice a similar pattern in the GBP/USD. Australia’s RBA decision did yield volatility, though only in the AUD/USD while the EUR/USD emerged unscathed. Chatter concerning Greece has subsided as the EU decides how to deal with the situation. In this case no news is good news, and the EUR/USD is benefitting from the silence thus far. German Retail Sales printed about in line with analyst expectations, yielding little response as we anticipated. However, the U.S. will release Pending Home Sales soon and this data point could move the Dollar should it deviate from analyst estimates. It’s uncertain at this point in time how another positive U.S. data point would impact the Dollar since the Greenback weakened yesterday and it soared on Friday with positive data releases during both sessions. Therefore, investors should keep a wary eye on the EUR/USD as today’s data hits the wires. The EU will release its headline Retail Sales figure tomorrow and considering today’s result it would be surprising for the number to print about in line with expectations. Meanwhile, attention will remain on the U.S. with ADP Non-Farm Employment Change and Services PMI data on deck for tomorrow. Additionally, the UK will release its Halifax HPI and Services PMI as well. Hence, activity in the Dollar could heat up and the EUR/USD could opt to follow broad-based movements in the FX markets barring any EU announcements concerning Greece.
Technically speaking, the EUR/USD faces topside technical barriers in the form of multiple downtrend lines along with 1/29 and 1/28 highs. Furthermore, the psychological 1.40 level could serve as a technical barrier should it be tested. As for the downside, the EUR/USD has our 1st tier uptrend line serving as technical cushions along with previous January lows. The EUR/USD has more uptrend lines waiting in the distance, although they are sitting off screen at the moment. Our 1st and 2nd tier uptrend lines could carry some weight since they run through April 2009 lows. That being said, a failure of our 1st tier could send a fairly negative signal considering April 2009 lows are around the 1.30.
Present Price: 1.3947
Resistances: 1.3962, 1.3993, 1.40026, 1.4056, 1.4105, 1.4135
Supports: 1.3930, 1.3903, 1.3878, 1.3857, 1.3833, 1.3806, 1.3782
Psychological: 1.40, January lows
Market Commentary provided by Fast Brokers.
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