{"id":1801,"date":"2009-05-06T10:02:20","date_gmt":"2009-05-06T15:02:20","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1801"},"modified":"2009-05-06T10:02:20","modified_gmt":"2009-05-06T15:02:20","slug":"eurusd-daily-commentary-for-5609","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/05\/06\/eurusd-daily-commentary-for-5609\/","title":{"rendered":"EUR\/USD Daily Commentary for 5.6.09"},"content":{"rendered":"

By Fast Brokers<\/span><\/p>\n

The EUR\/USD\u2019s rally topped out yesterday as we expected, with the S&P futures hesitating at 900 while investors await Thursday\u2019s flood of stress test news and economic data.\u00a0 Yesterday\u2019s decline came on minimal volume, showing there is presently insufficient conviction behind the pullback to send the currency pair tumbling.\u00a0 The EUR\/USD is stabilizing above Monday\u2019s lows, and could bounce back a bit and trade sideway\u2019s between now and the ECB\u2019s meeting on Thursday.\u00a0 We maintain our bullish outlook on the EUR\/USD since no key fundamentals were broken and the momentum remains to the upside with the currency pair trading comfortably above our uptrend lines.<\/p>\n

The two key barriers to a large ascent in the EUR\/USD are the psychological 1.35 level and our 3rd tier downtrend line.\u00a0 If the currency pair can brave above our 3rd tier downtrend line in particular, there will be little downtrend pressure left to hold back large gains.\u00a0 The EU will release Retail Sales data today, which should receive limited reaction in the FX markets.\u00a0 However, America\u2019s ADP Non-Farm Employment change number could be a market move if it comes in far above\/below analyst expectations.\u00a0 Therefore, we expect the EUR\/USD to move in lock-step with the S&P futures over the next 24 hours, exercising its positive correlation.<\/p>\n

Thursday\u2019s ECB meeting will be critical since the ECB governors have offered various opinions as to the direction of the central bank\u2019s monetary policy.\u00a0 The ECB has maintained its benchmark rate at a respectable level while avoiding liquidity measures such as quantitative easing.\u00a0 The uncertainty among investors could keep any uptrend in check as investors eagerly await results from the meeting.\u00a0 The ECB\u2019s announcement will come on the same day as America\u2019s stress test results, meaning we expect to see a large spike in volatility on Thursday.<\/p>\n

Fundamentally, we find resistances of 1.3329, 1.3359, 1.3389, 1.3420, and 1.3442.\u00a0 To the downside, we see supports of 1.3283, 1.3241, 1.3211, 1.3179, and 1.3143.\u00a0 The 1.30 area serves as a psychological cushion with 1.35 acting as a psychological barrier.\u00a0 The EUR\/USD is currently exchanging at 1.3280.<\/p>\n

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

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

Disclaimer:<\/strong> FastBrokers\u2019 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.<\/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\u2019s rally topped out yesterday as we expected, with the S&P futures hesitating at 900 while investors…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-1801","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=1801"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1801\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}