{"id":11185,"date":"2010-07-19T15:39:03","date_gmt":"2010-07-19T19:39:03","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=11185"},"modified":"2010-07-19T15:39:03","modified_gmt":"2010-07-19T19:39:03","slug":"eurusd-consolidates-below-1-30-despite-negative-news","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/07\/19\/eurusd-consolidates-below-1-30-despite-negative-news\/","title":{"rendered":"EUR\/USD consolidates below 1.30 despite negative news"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is consolidating below its highly psychological 1.30 level despite today\u2019s negative news from Ireland and Hungary.\u00a0 Moody\u2019s lowered Ireland\u2019s debt rating by one notch over worries of financial deterioration within the country\u2019s banking sector.\u00a0 However, investors have brushed aside the downgrade as overdue and Moody\u2019s also stated that Ireland is making good progress as far as austerity is concerned.\u00a0 Meanwhile, Hungary ended talks with the IMF and EU regarding the remainder of bailout funds after Hungary refused to continue with austerity measures.\u00a0 Hungarian bond yields soared in reaction to the news and the Forint tumbled by nearly -3.5% vs. the Euro.\u00a0 Investors should keep a close eye on the situation in Hungary since EU banks undoubtedly have substantial exposure to Eastern European economies.\u00a0 On an encouraging note, it is likely that the Hungarian government is just trying to win political points and leaders will likely come to an agreement with the IMF and EU.\u00a0 Regardless, investors should monitor the situation over the coming days.\u00a0 Despite the negative news hitting the wires today the EUR\/USD has held up well and the EUR\/GBP is popping.\u00a0 The relative strength in the Euro likely stems from anticipation of the release of bank stress test results on Friday.\u00a0 Investors expect the report will boost confidence in the EU\u2019s financial situation.\u00a0 However, considering how much the Euro has been boosted ahead of the stress test results it wouldn\u2019t be surprising to see the currency pair sell on the news if investor uncertainty stays at a heightened level throughout the week, particularly if the stress test isn\u2019t as thorough as desired.\u00a0 The EU will be quiet on the data wire tomorrow, meaning investors will be focusing on the release of the RBA\u2019s meeting minutes along with U.S. building permits data.<\/p>\n

Technically speaking, the EUR\/USD faces technical barriers in the form of intraday highs and the highly psychological 1.30 level.\u00a0 As for the downside, the EUR\/USD has supports in the form of intraday and 7\/15 lows.<\/p>\n

Present Price: 1.2928
\nResistances: 1.2973, 1.2990, 1.3020, 1.3040, 1.3067, 1.3091
\nSupports:\u00a0\u00a0 1.2940, 1.2914, 1.2886, 1.2856, 1.2836, 1.2799
\nPsychological: 1.30<\/p>\n

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

Market Commentary<\/strong><\/em> provided by Fast Brokers.<\/a><\/strong><\/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<\/div>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – The EUR\/USD is consolidating below its highly psychological 1.30 level despite today\u2019s negative news from Ireland and Hungary.\u00a0 Moody\u2019s lowered Ireland\u2019s debt rating by one notch over worries of financial deterioration within the country\u2019s banking sector.\u00a0 However, investors have brushed aside the downgrade as overdue and Moody\u2019s also stated that Ireland … <\/p>\n

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