{"id":2610,"date":"2009-06-23T10:32:49","date_gmt":"2009-06-23T15:32:49","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2610"},"modified":"2009-06-23T10:32:49","modified_gmt":"2009-06-23T15:32:49","slug":"eurusd-turns-course-to-retest-140","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/23\/eurusd-turns-course-to-retest-140\/","title":{"rendered":"EUR\/USD Turns Course to Retest 1.40"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD has taken a step up from the inflection point of our 2nd tier uptrend and downtrend lines despite unexciting economic data.\u00a0 Most of the PMI numbers from the EU today came in at or below analyst expectations while Germany\u2019s consumer confidence surprised to the upside.\u00a0 The EU\u2019s manufacturing and service sectors are still contracting since global demand has yet to pick up to pre-crisis levels.\u00a0 Overall, the data over the past 48 hours hasn\u2019t been encouraging, yet the Euro is outperforming across the board.\u00a0 Therefore, the Euro\u2019s appreciation may be a result of oversold conditions.\u00a0 It seems the EUR\/USD may fluctuate between our 2nd tier uptrend and 3rd tier downtrend lines in a sign that investors aren\u2019t willing to give up yet on the currency pair\u2019s medium-term uptrend.\u00a0 This is good news for the bulls and the prospect of a global economic recovery since the EUR\/USD managed to ignore a pullback in gold and equities while avoiding a technical downturn of its own.\u00a0 However, the EUR\/USD finds itself facing the psychological 1.40 level once again, and our 3rd tier downtrend line could prove to be a worthy foe should it be tested.\u00a0 Hence, a near-term downtrend force remains despite the encouraging pop taking place.\u00a0 Investors should keep track of volume to see if the EUR\/USD can register volume of 6000+ on a 4-hour up-bar.\u00a0 High volume to the upside could be an indicator of a changing tide in market sentiment from negative to positive.<\/p>\n

Meanwhile, investors will be interested in the housing and durable goods data coming in from the U.S. over the next two trading sessions.\u00a0 Should the numbers disappoint, the Dollar may experience a rapid near-term appreciation across the board.\u00a0 Furthermore, markets will be paying close attention to the results of the Fed meeting ending on Wednesday.\u00a0 Investors will be interested in language from the Fed concerning its quantitative easing program and outlook for inflation.\u00a0 However, we don\u2019t expect the Fed to make any surprise moves, and will likely state that inflation isn\u2019t a worry at present due to rising unemployment and weak CPI data.\u00a0 On the other hand, we expect Bernanke & Co. reassure the market that the Fed will unwind its liquidity policies when the economy is stable enough to handle rising interest rates.\u00a0 However, if the Fed does suggest a rate hike in the near future and\/or another form of liquidity constraint, the Dollar would likely appreciate rapidly.<\/p>\n

Regardless of the outcome of the Fed meeting and upcoming economic data, we maintain our negative near-term outlook on the EUR\/USD trend-wise due to the discouraging economic data from the EU today.\u00a0 Furthermore, U.S. equities are under selling pressure and are trading below the psychological 900 level.\u00a0 Additionally, we believe gold me an important downward movement technically during yesterday\u2019s session.\u00a0 Hence, there remains a negative tone in the market and the EUR\/USD should exercise its positive correlation with U.S. equities.\u00a0 Meanwhile, a medium-term uptrend is at play, meaning there are several reliable defenses on the way down should the EUR\/USD reverse course.<\/p>\n

Present Price: 1.3989<\/p>\n

Resistances: 1.4019, 1.4052, 1.4112, 1.4147, 1.4198<\/p>\n

Supports: 1.3947, 1.3847, 1.3807, 1.3759<\/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 EUR\/USD has taken a step up from the inflection point of our 2nd tier uptrend and downtrend lines despite unexciting economic data.\u00a0 Most of the PMI numbers from the EU today came in at or below analyst expectations while Germany\u2019s consumer confidence surprised to the upside.\u00a0 The EU\u2019s manufacturing and … <\/p>\n

Continue reading “EUR\/USD Turns Course to Retest 1.40”<\/span><\/a><\/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-2610","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2610","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=2610"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2610\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}