{"id":2209,"date":"2009-06-01T09:44:49","date_gmt":"2009-06-01T14:44:49","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2209"},"modified":"2009-06-01T09:44:49","modified_gmt":"2009-06-01T14:44:49","slug":"eurusd-continues-climb-above-140-yet-euro-shows-relative-weakness","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/01\/eurusd-continues-climb-above-140-yet-euro-shows-relative-weakness\/","title":{"rendered":"EUR\/USD Continues Climb Above 1.40 Yet Euro Shows Relative Weakness"},"content":{"rendered":"

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

The EUR\/USD kept steamrolling through May 22 highs on increasing volume, and is distancing itself from the psychological 1.40 level on Monday.\u00a0 It appears the action may not slow today with the 8:00 bar on the 4 hour registering a higher volume than the previous 5 sessions.\u00a0 Additionally, our trend lines are reaching their much anticipated inflection point.\u00a0 With the EUR\/USD making a key fundamental move to the upside, it appears investors are choosing to go the way of the uptrend.\u00a0 That being said, investors should keep a close eye on volume, because as soon as it tails off, the EUR\/USD should reach a near-term peak.\u00a0 We\u2019re already witnessing a slight pullback after the run higher earlier this session.\u00a0 If Friday wasn\u2019t the peak in volume, then it seems today may be the top with the bulls running out of energy.<\/p>\n

Regardless of any near-term peak, the EUR\/USD remains in great shape.\u00a0 The currency pair continues its bull run with all foreseeable medium-term downtrend line pressures fading into the distance.\u00a0 Even though the EUR\/USD\u2019s uptrend has played out beautifully, the currency pair is approaching some near-term obstacles which could result in some consolidation.\u00a0 These obstacles include 12\/29 and 12\/18 highs.\u00a0 Therefore, the 1.43-1.47 area could prove to be a bit challenging in the near-term.\u00a0 While a wide 10% range, 1.43-1.47 gives you an idea of where the EUR\/USD might bounce around.\u00a0 1.43 would naturally serve as the 1st consolidation point with investors awaiting the results of the ECB meeting on Thursday.\u00a0 We won\u2019t see too much data from the EU until then, giving all the more reason to anticipate an incoming period of consolidation.\u00a0 If the EUR\/USD can manage to pop above 1.4432 then the currency pair may ignore 1.43 consolidation and accelerate near-term gains.<\/p>\n

Meanwhile, economic data around the globe continues to improve.\u00a0 Investors are shrugging off the GM bankruptcy in what appears to be a buy on the news.\u00a0 While investors are anticipating the ECB to keep its benchmark rate at 1%, the central bank pulled a trick card last meeting by announcing the purchase of covered bonds.\u00a0 As a result, investors will be paying more attention to the ECB\u2019s action and if inaction language concerning their alternative monetary policy actions.\u00a0 The EUR\/USD should continue to benefit as long as the global economy recovers and investors exit the dollar from fear of inflation in the U.S.\u00a0 Therefore, it appears we are returning to pre-crisis norms of a weak dollar and pricey oil.<\/p>\n

Looking over the EUR\/GBP, this currency pair is threatening to making a very bearish move beneath December 08\u2019 lows.\u00a0 Therefore, we could continue to see relative weakness in the Euro as compared to the Pound, making the GBP\/USD a stronger currency for the time being.\u00a0 Despite our anticipation of upcoming consolidation EUR\/USD, we maintain our bullish outlook trend wise due to the fundamental and technical moves made over the past few weeks.<\/p>\n

Fundamentally, we find resistances of 1.4222, 1.4290, 1.4325, 1.4374, and 1.4432.\u00a0 To the downside, we see supports of 1.4187, 1.4117, 1.4078, 1.4024, and 1.3987.\u00a0 The 1.40 area serves as a psychological cushion with 1.45 acting as a psychological barrier.\u00a0 The EUR\/USD is currently exchanging at 1.4208.<\/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 kept steamrolling through May 22 highs on increasing volume, and is distancing itself from the psychological…<\/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-2209","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2209","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=2209"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2209\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}