{"id":2635,"date":"2009-06-24T12:12:58","date_gmt":"2009-06-24T17:12:58","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2635"},"modified":"2009-06-24T12:12:58","modified_gmt":"2009-06-24T17:12:58","slug":"eurusd-climbs-past-140-on-rising-volume","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/24\/eurusd-climbs-past-140-on-rising-volume\/","title":{"rendered":"EUR\/USD Climbs Past 1.40 on Rising Volume"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD has successfully surpassed the psychological 1.40 level and our previous 3rd tier downtrend line on substantial volume.\u00a0 Therefore, the currency pair may have what it takes to buck the near-term downtrend.\u00a0 The EUR\/USD is strengthened despite disappointing PMI data from the EU yesterday.\u00a0 The GBP\/USD is also climbing while the USD\/JPY declines towards our 1st tier uptrend line.\u00a0 Hence, it appears the EUR\/USD is benefitting from an exodus from the Dollar as the FOMC monetary policy decision approaches.\u00a0 Most analysts predict the Fed will signal little change in its monetary policy since inflation doesn\u2019t appear to be an immediate concern.\u00a0 However, investors believe the inability of the Fed to tighten its monetary policy due to the fragile state of the U.S. economy may harm the U.S. economy in the future.\u00a0 Furthermore, the longer such a massive amount of liquidity remains in the marketplace, the longer the Dollar will suffer.\u00a0 The Dollar is depreciating across the board due to this premise, and the EUR\/USD is tagging along for the ride.<\/p>\n

Despite the broad weakness of the Dollar, the EUR\/USD isn\u2019t benefitting as much as it could due to the recent disappointing economic data.\u00a0 In addition to yesterday\u2019s subpar PMI data, the EU reported a higher current account deficit than analysts expected.\u00a0 The current account data confirms that demand for EU exports is not recovering as quickly as analysts had hoped, creating a drag on manufacturing and production.\u00a0 By running a higher current account deficit, the EU is flooding the marketplace with more Euros, placing the currency in a comparatively weak position.\u00a0 Regardless, the EUR\/USD is making encouraging progress to the upside from a technical standpoint.\u00a0 If the currency pair can climb above our new 3rd tier downtrend line on sizeable volume, we may be comfortable with reinitiating our positive outlook trend-wise.\u00a0 After all, the EUR\/USD\u2019s medium-term uptrend has been intact the entire time, the currency pair may just not make as large of a retracement as we anticipated.\u00a0 However, we remain in a cautious stance, and we will have to wait and see how the Dollar reacts to today\u2019s important economic data from the U.S. combined with the Fed\u2019s policy decision.<\/p>\n

Present Price: 1.4084<\/p>\n

Resistances: 1.4112, 1.4147, 1.4186, 1.4225, 1.4229<\/p>\n

Supports: 1.4052, 1.4028, 1.3978, 1.3947, 1.3894<\/p>\n

Psychological: 1.40, 1.45<\/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 successfully surpassed the psychological 1.40 level and our previous 3rd tier downtrend line on substantial volume.\u00a0 Therefore, the currency pair may have what it takes to buck the near-term downtrend.\u00a0 The EUR\/USD is strengthened despite disappointing PMI data from the EU yesterday.\u00a0 The GBP\/USD is also climbing while … <\/p>\n

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