{"id":2597,"date":"2009-06-22T09:33:12","date_gmt":"2009-06-22T14:33:12","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2597"},"modified":"2009-06-22T09:33:12","modified_gmt":"2009-06-22T14:33:12","slug":"eurusd-approaches-important-inflection-point","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/22\/eurusd-approaches-important-inflection-point\/","title":{"rendered":"EUR\/USD Approaches Important Inflection Point"},"content":{"rendered":"

By Fast Brokers <\/strong>– The collision between our 2nd tier trend lines is approaching today, indicating volatility could increase over the next few trading sessions.\u00a0 Looking off towards the Dollar\u2019s correlations, we notice gold made another decisive move south today once reaching an inflection point of its own.\u00a0 Meanwhile, crude and the S&P futures are flirting with important trend lines.\u00a0 We believe the Dollar could take its cue from gold and exercise their negative correlation, implying a decline in the EUR\/USD.\u00a0 As we mentioned in our previous analysis, the Dollar is at a T-Junction with the Euro, meaning we should see a trend statement soon.\u00a0 That being said, the mentality seems to be shifting across the board.\u00a0 From overbought equities to international tensions to expensive crude, the momentum appears to be shifting to the downside.\u00a0 Markets were relatively quiet last week while patterns consolidated, reflecting investor indecisiveness.\u00a0 However, it seems the FX markets could awaken as trend lines reach their respective inflection points.<\/p>\n

If the EUR\/USD should decide to make a game-changing move to the south as we anticipate, the currency pair could experience a swift pullback towards our 1st tier uptrend line and the 1.35-1.36 zone.\u00a0 We can\u2019t forget the EUR\/USD previously broke below the neckline (3rd tier uptrend line) of our head and shoulders patter and the retest seems to have failed.\u00a0 Large volume sessions have been dominated by the sell-side and volume is on the decline again.\u00a0 Hence, investors should keep a close eye out for any large action to the downside, particularly any with the currency pair trading near June lows.\u00a0 As for the upside, investors should look for a pop above 1.40 and our 3rd tier downtrend line on large volume before feeling comfortable.<\/p>\n

The Euro continues to exhibit relative weakness with the EUR\/GBP breaking below some important uptrend lines.\u00a0 The weakness in the Euro comes despite a slightly better than expected German Ifo Business Climate number.\u00a0 The data point remains well beneath 2007 highs, signifying it\u2019s still too early to tell whether we\u2019re experiencing a head-fake via improvement in economic data, or whether we\u2019re witnessing a true technical bottom.\u00a0 Therefore, despite the positivity inherent in today\u2019s release, the EU region remains in a comparatively mixed state regarding its economic condition.\u00a0 The headlines will remain relatively quiet on the economic data news front until the EU releases a slew of manufacturing and services PMI data points on Tuesday.\u00a0 We maintain our negative outlook trend-wise for the near-term due to the aforementioned analysis.\u00a0 However, we keep in mind that there is a medium-term uptrend in play, and it will take several fundamental movements to the downside to alter the currency pair\u2019s ultimate path upward.<\/p>\n

Present Price: 1.3855<\/p>\n

Resistances: 1.3894, 1.3954, 1.4019, 1.4052, 1.4112<\/p>\n

Supports: 1.3847, 1.3807, 1.3759, 1.3724, 1.3668<\/p>\n

Psychological: 1.40, 1.35<\/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 collision between our 2nd tier trend lines is approaching today, indicating volatility could increase over the next few trading sessions.\u00a0 Looking off towards the Dollar\u2019s correlations, we notice gold made another decisive move south today once reaching an inflection point of its own.\u00a0 Meanwhile, crude and the S&P futures are … <\/p>\n

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