{"id":2241,"date":"2009-06-02T10:39:58","date_gmt":"2009-06-02T15:39:58","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2241"},"modified":"2009-06-02T10:39:58","modified_gmt":"2009-06-02T15:39:58","slug":"eurusd-pops-despite-higher-than-expected-eu-unemploymenteurusd-pops-despite-higher-than-expected-eu-unemployment","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/02\/eurusd-pops-despite-higher-than-expected-eu-unemploymenteurusd-pops-despite-higher-than-expected-eu-unemployment\/","title":{"rendered":"EUR\/USD Pops Despite Higher Than Expected EU Unemployment"},"content":{"rendered":"

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

Volume topped out yesterday as anticipated and the EUR\/USD slipped down towards our 1.4117 support.\u00a0 The currency pair is bouncing back on Wednesday despite the EU unemployment rate coming in one basis point higher than expected at 9.2%.\u00a0 Our trend lines are reaching their inflection point right now, indicated we could see a bullish breakout today into the 1.43-1.44 range.\u00a0 The present relative strength of the Euro is supported by a rising EUR\/GBP.\u00a0 However, yesterday the EUR\/GBP registered significant losses from a technical standpoint.\u00a0 The EUR\/GBP sank beneath December 2008 lows, a very bearish move.\u00a0 Therefore, even though we\u2019re witnessing an intraday recovery in the currency pair, it appears the EUR\/GBP\u2019s downtrend has more room to go.\u00a0 Hence, even though we maintain our bullish outlook on the EUR\/USD trend wise, it seems the currency pair may continue to post a relatively weak performance as compared to the GBP\/USD should the Dollar depreciate further.<\/p>\n

Regardless of the 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 3% range, 1.43-1.47 gives you an idea of where the EUR\/USD might bounce around.\u00a0 1.43-1.44 could 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 However, 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

Fundamentally, we maintain our resistances of 1.4222, 1.4290, 1.4325, 1.4374, and 1.4432.\u00a0 To the downside, we hold our 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 1.4216.<\/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 – Volume topped out yesterday as anticipated and the EUR\/USD slipped down towards our 1.4117 support…<\/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-2241","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2241","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=2241"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2241\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}