{"id":2695,"date":"2009-06-26T10:38:59","date_gmt":"2009-06-26T15:38:59","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2695"},"modified":"2009-06-26T10:38:59","modified_gmt":"2009-06-26T15:38:59","slug":"eurusd-strengthens-back-above-140","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/06\/26\/eurusd-strengthens-back-above-140\/","title":{"rendered":"EUR\/USD Strengthens Back Above 1.40"},"content":{"rendered":"

By Fast Brokers <\/strong>– The EUR\/USD cut its losses yesterday above June 22nd highs, and is presently retesting June 24th highs along with our previous top-end 1.4097 resistance.\u00a0 However, we take note the EUR\/USD\u2019s current movement upward is occurring on declining volume, making a technical breakout to the upside today unlikely.\u00a0 On the other hand, if the EUR\/USD can climb above June 24th highs we could see a near-term pop to our 3rd tier downtrend line.\u00a0 We notice a similar space for near-term upward mobility in gold, which is positively correlated with the EUR\/USD.\u00a0 However, we don\u2019t anticipate any immediate term movement above the EUR\/USD\u2019s 3rd tier downtrend line since there isn\u2019t much economic data on the table today.<\/p>\n

The EUR\/USD is participating in another broad-based route of the greenback resulting from China reiterating its desire for a new currency standard.\u00a0 A global monetary detachment from the Dollar would be negative for America\u2019s economy since it would mean replacing the greenback as the standard for global transactions and pricing of commodities.\u00a0 The monetary tug of war is having a negative psychological impact on the Dollar, sending the EUR\/USD higher despite recent disconcerting economic data from the EU region.\u00a0 While the EUR\/USD has experienced some encouraging defense to the downside lately, we must remember that the larger volume has been on the sell side.<\/p>\n

The EUR\/USD experienced heightened volume to the downside on the 24th as a result of the ECB discretely injecting roughly $615 Billion into its banking system.\u00a0 The ECB is allowing banks to take one-year loans from this massive pool of liquidity at a fixed 1% rate.\u00a0 While the ECB isn\u2019t labeling the liquidity package as a bailout, the apparent terms of the loans are close enough to a rescue.\u00a0 Apparently, German exporters and manufacturers are facing difficulty attaining credit\/capital, indicating credit markets are still tight.\u00a0 The ECB is hoping the new injection of liquidity into the banking system will encourage higher loan rates to keep the recovery humming.\u00a0 As a result of the EU\u2019s use of one-year funds, the EU, Britain, Japan, and U.S. are a little more even now in regards to their monetary exposure to the economic crisis.\u00a0 Although, the ECB still has a benchmark rate of 1% as compared to the U.S. and Japan\u2019s sub 1% rates.<\/p>\n

Regardless of the psychological comments made by China, there remains a cap on the EUR\/USD\u2019s gains.\u00a0 The mixed economic data and new liquidity measures add to the concern that we may experience a second wave of the economic crisis.\u00a0 The BOE and Fed have also spoken cautiously about the health of the global economy and financial system.\u00a0 Investors should keep in mind that the EUR\/USD still exhibits an ultimate positive correlation with U.S. equities.\u00a0 Therefore, the EUR\/USD\u2019s uptrend may be compromised if the global economic recovery were to hit a stumbling block and U.S. equities head south in reaction.<\/p>\n

We believe the tug of war could continue between the bulls and the bears for the short-term.\u00a0 Investors seem indecisive in regards to which direction to commit, and we will wait for a technically significant statement before passing judgment.\u00a0 Most important will be the future interaction between the EUR\/USD and our 3rd tier uptrend and downtrend lines.
\nPresent Price: 1.4084<\/p>\n

Resistances: 1.4097, 1.4141, 1.4167, 1.4191, 1.4229<\/p>\n

Supports: 1.4061, 1.4024, 1.3978, 1.3928, 1.3894<\/p>\n

Psychological: 1.45, 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 cut its losses yesterday above June 22nd highs, and is presently retesting June 24th highs along with our previous top-end 1.4097 resistance.\u00a0 However, we take note the EUR\/USD\u2019s current movement upward is occurring on declining volume, making a technical breakout to the upside today unlikely.\u00a0 On the other hand, … <\/p>\n

Continue reading “EUR\/USD Strengthens Back Above 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-2695","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2695","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=2695"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2695\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}