{"id":2288,"date":"2009-06-03T11:47:55","date_gmt":"2009-06-03T16:47:55","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2288"},"modified":"2009-06-03T11:47:55","modified_gmt":"2009-06-03T16:47:55","slug":"eurusd-consolidates-as-investors-await-thursdays-ecb-meeting","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/03\/eurusd-consolidates-as-investors-await-thursdays-ecb-meeting\/","title":{"rendered":"EUR\/USD Consolidates as Investors Await Thursday\u2019s ECB Meeting"},"content":{"rendered":"

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

The EUR\/USD hit solid resistance in the 1.43 area yesterday as we anticipated, and has pulled back below 1.4222 resistance.\u00a0 Today\u2019s retreat is accompanied by declining volume, indicating the move may be one of consolidation carrying little weight.\u00a0 Yesterday\u2019s trend line inflection point was followed by a pop, but no fundamental movement.\u00a0 However, we wouldn\u2019t be surprised to see the inflection move lag a day or two, so investors should be on their toes.\u00a0 If the EUR\/USD can climb above 12\/29 highs and our 1.4374 resistance we could witness another near-term breakout.\u00a0 As for the downside, if our 1.4117 support doesn\u2019t hold we could witness a retracement towards 1.40.\u00a0 Investors shouldn\u2019t be too discouraged by consolidation since the medium-term downtrend lines were laid to rest a while ago.<\/p>\n

Naturally, investors are highly anticipating Thursday\u2019 ECB news conference.\u00a0 While the central bank is expected to hold its benchmark rate at 1%, the ECB has been prone to surprise investors in an effort to impact the Euro.\u00a0 The investment world will be paying close attention to how Trichet addresses the ECB\u2019s purchase of covered bonds, and whether the EU plans to venture into more extensive alternative liquidity measures, such as quantitative easing.\u00a0 The EU continues to have lingering economic problems, likely due to the scattered composition of the union.\u00a0 The relatively mixed performance of the EU economy has led to a comparatively weak appreciation of the Euro against the Dollar.\u00a0 The EUR\/GBP continues its freefall, and it seems there\u2019s more room to go on the downside.\u00a0 Regardless, the EUR\/USD is reaping the rewards of a return to a pre-crisis economy, or a very weak Dollar and pricey crude.<\/p>\n

Some heavily-weighted U.S. economic data will be hitting the wires today, including the ADP Non-Farm Employment Change, ISM Non-Manufacturing PMI, Factory Orders and weekly Crude Oil Inventories.\u00a0 Therefore, volatility could kick in pretty quickly.\u00a0 The S&P and crude futures are drifting lower this morning, indicating a synchronized pullback.\u00a0 However, we wouldn\u2019t be surprised to see the weakness turn around quickly, especially if today\u2019s economic data should beat analyst expectations.\u00a0 We maintain our bullish outlook trend-wise on the EUR\/USD until further notice.<\/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 1.4201.<\/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 hit solid resistance in the 1.43 area yesterday as we anticipated, and has pulled back below…<\/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-2288","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2288","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=2288"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2288\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}