{"id":1824,"date":"2009-05-07T11:52:37","date_gmt":"2009-05-07T16:52:37","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=1824"},"modified":"2009-05-07T11:52:37","modified_gmt":"2009-05-07T16:52:37","slug":"eurusd-daily-commentary-for-5709","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/05\/07\/eurusd-daily-commentary-for-5709\/","title":{"rendered":"EUR\/USD Daily Commentary for 5.7.09"},"content":{"rendered":"

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

The EUR\/USD is rallying strongly in reaction to today\u2019s decision by the ECB.\u00a0 Trichet announced the ECB is lowering its benchmark rate to 1%, in-line with analyst expectations.\u00a0 In addition to the interest rate cut, the ECB has decided to move forward with quantitative easing-like measures.\u00a0 The ECB will use roughly $80 billion to purchase Euro denominated bonds while extending maturities to 12 months.\u00a0 The EUR\/USD is reacting positively to quantitative easing, as we witnessed previously with the GBP\/USD after the BOE launched its own quantitative easing operation.\u00a0 Investors believe \u2018alternative\u2019 liquidity measures will help the EU economy recover more quickly while counterbalancing deflationary pressures.\u00a0 Furthermore, it\u2019s encouraging to see the ECB being a little more proactive after providing mixed opinions which heightened uncertainty.<\/p>\n

We notice a pickup in volume on the EUR\/USD\u2019s up-bars as the currency pair retests May highs.\u00a0 If the EUR\/USD receives some strong volume to the upside over the next 4 hours, the momentum could be enough to send the currency pair beyond its present right shoulder.\u00a0 Technically speaking, this could be a sign of a near-term breakout to the upside.\u00a0 However, the EUR\/USD may not be able to enjoy its upward momentum for too long since our two key barriers are approaching, 1.35 and our 3rd tier downtrend line.\u00a0 Also, keep in mind the EUR\/USD ultimately falls in line with its positive correlation with U.S. equities.\u00a0 Therefore, if investors take profits in equities and sell on the news, the EUR\/USD\u2019s rally could cool as well.\u00a0 On the other hand, if the currency pair can manage to climb over these barriers, particularly the downtrend line, near-term gains could really accelerate.\u00a0 With the S&P futures breaking free of their own restraints, the correlations are playing in favor of a broad based depreciation of the Dollar.\u00a0 We maintain our bullish outlook for the aforementioned reasons.<\/p>\n

Fundamentally, we find resistances of 1.3442, 1.3474, 1.3497, 1.3536, and 1.3573.\u00a0 To the downside, we see supports of 1.3420, 1.3389, 1.3359, 1.3322, and 1.3292.\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 1.3413.<\/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 is rallying strongly in reaction to today\u2019s decision by the ECB. Trichet announced the ECB is lowering its benchmark rate…<\/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-1824","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1824","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=1824"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/1824\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=1824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=1824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=1824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}