{"id":10021,"date":"2010-06-07T11:08:40","date_gmt":"2010-06-07T15:08:40","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=10021"},"modified":"2010-06-07T11:08:40","modified_gmt":"2010-06-07T15:08:40","slug":"eurusd-hammered-by-hungary","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/06\/07\/eurusd-hammered-by-hungary\/","title":{"rendered":"EUR\/USD Hammered by Hungary"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD was hammered by news that Hungary\u2019s previous government put window dressing on their budgets.\u00a0 Some have whispered that Hungary could be in situation comparable to Greece and will need to undergo further fiscal consolidation in order to right the ship.\u00a0 Negative news from Hungary ignited uncertainty concerning the exposure of EU banks to Eastern European markets.\u00a0 The news was enough to tip the scale, sending the EUR\/USD tumbling below 1.20 towards February 2006 lows.\u00a0 As we have stated repeatedly, it\u2019s wise to expect the unexpected from the EU, and Friday\u2019s market activity confirms our suspicions.\u00a0 Meanwhile, the G 20 will try and settle markets, though it\u2019s unlikely any agreement of substance will come from this weekend\u2019s meeting.\u00a0 The EUR\/USD\u2019s step below 1.20 could prove to be an important near-term development, though the currency pair will likely try to develop a new base soon.\u00a0 While we\u2019ll have to wait and see how the situation in Hungary plays out, investors should also keep in mind that news can pop up from Spain and Greece as well, not to mention other fiscally troubled EU nations.\u00a0 Hence, even though Hungary seems to be the next shoe to drop, we\u2019re coming to realize Europe has a big closet.\u00a0 Next week\u2019s data wire is fairly empty until Thursday\u2019s central bank meetings.\u00a0 Therefore, psychological forces should be in the driver\u2019s seat over the next few trading sessions.\u00a0 That being said, keep your eyes on the news wires because even though we\u2019re light on data that doesn\u2019t mean psychological won\u2019t make the market move.<\/p>\n

Technically speaking, the EUR\/USD faces multiple layers of topside barriers, including 1.20 and 6\/4 highs.\u00a0 As for the downside, the EUR\/USD has limited near-term support besides February 2006 lows, though as we said it\u2019s possible the currency pair will try to form a new base around 1.20.<\/p>\n

Present Price: 1.1965
\nResistances: 1.1975, 1.1991, 1.2017, 1.2034, 1.2052, 1.2064, 1.2083
\nSupports:\u00a0\u00a0 1.1952, 1.1941, 1.1919, 1.1909, 1.1890, 1.1867
\nPsychological: February 2006 lows, 1.20, 1.19<\/p>\n

\"\"<\/a><\/p>\n

(click chart to enlarge)<\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong>.<\/a><\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regarded neither 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.<\/p>\n

Risk Disclosure:<\/strong> 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.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – The EUR\/USD was hammered by news that Hungary\u2019s previous government put window dressing on their budgets.\u00a0 Some have whispered that Hungary could be in situation comparable to Greece and will need to undergo further fiscal consolidation in order to right the ship.\u00a0 Negative news from Hungary ignited uncertainty concerning the exposure … <\/p>\n

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