{"id":2784,"date":"2009-07-02T10:50:36","date_gmt":"2009-07-02T15:50:36","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2784"},"modified":"2009-07-02T10:50:36","modified_gmt":"2009-07-02T15:50:36","slug":"eurusd-reverses-from-our-3rd-tier-downtrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/02\/eurusd-reverses-from-our-3rd-tier-downtrend-line\/","title":{"rendered":"EUR\/USD Reverses from our 3rd Tier Downtrend Line"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is losing yesterday\u2019s positive momentum after employment data from both the EU and U.S. showed rising unemployment continues to be a thorn in the side of the economic recovery.\u00a0 The EU\u2019s unemployment rate came in at 9.5%, two basis points above analyst expectations, while the previous release was revised upwards by one basis point.\u00a0 As for the U.S., America\u2019s unemployment was also reported at 9.5%, a basis point below analyst expectations.\u00a0 However, its non-farm employment change was much lower than anticipated (-467k vs. -360k).\u00a0 Additionally, weekly unemployment claims remain at a 600k+ level with average hourly earnings dropping to a flat 0.0%.\u00a0 Although the global economic stimulus packages have helped boost production and manufacturing, job creation in both the EU and U.S. hasn\u2019t benefited as much as governments had hoped.\u00a0 The bleak state of unemployment is dragging on the EUR\/USD due to the negative reaction of U.S. equities and crude.\u00a0 The EUR\/USD is positively correlated with the S&P futures, so investors should monitor the S&P and its interaction with its highly psychological 900 level.\u00a0 We suspect volatility may remain high throughout today\u2019s session since Friday will be shortened due to the July 4th weekend.<\/p>\n

The ECB kept its benchmark rate unchanged at 1% as analysts expected.\u00a0 We believe the ECB will keep a neutral stance as far as monetary policy is concerned as the central bank monitors the impact of its purchase of covered bonds.\u00a0 Investors should also keep in mind the EU opened a roughly $615 billion liquidity window to banks last week in the form of 1 year 1% loans.\u00a0 The ECB wants to see how these alternative liquidity measures impact the credit markets and availability of funds to struggling EU exporters and manufacturers.\u00a0 However, the ECB has been prone to surprise the market in the past in order to induce a monetary shock, so investors shouldn\u2019t be complacent and expect the ECB to stay quiet for too long.<\/p>\n

Despite the pullback in the EUR\/USD, bulls should be encouraged that volume hasn\u2019t spiked to an abnormal level.\u00a0 Furthermore, the EUR\/USD is finding support in our 2nd tier uptrend line and the psychological 1.40 level.\u00a0 As a result, it seems the EUR\/USD may carry its trading range into next week.\u00a0 The trading range could get tighter soon since investors may wait for our 1st tier uptrend and 3rd tier downtrend lines to approach their inflection point before making a key directional decision.\u00a0 Hence, investors may want to view the 2nd quarter earnings reports and updated guidance from corporate officers over the next couple weeks before committing to either trend.\u00a0 On the other hand, should either our 1st tier uptrend or 3rd tier downtrend line break, investors could see the formation of a new directional leg.<\/p>\n

Present Price: 1.4050<\/p>\n

Resistances: 1.4059, 1.4097, 1.4114, 1.4141, 1.4167<\/p>\n

Supports: 1.4024, 1.40, 1.3978, 1.3937, 1.3889<\/p>\n

Psychological: 1.40<\/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 is losing yesterday\u2019s positive momentum after employment data from both the EU and U.S. showed rising unemployment continues to be a thorn in the side of the economic recovery.\u00a0 The EU\u2019s unemployment rate came in at 9.5%, two basis points above analyst expectations, while the previous release was revised … <\/p>\n

Continue reading “EUR\/USD Reverses from our 3rd Tier Downtrend Line”<\/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-2784","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2784","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=2784"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2784\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}