{"id":2802,"date":"2009-07-06T09:52:07","date_gmt":"2009-07-06T14:52:07","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2802"},"modified":"2009-07-06T09:52:07","modified_gmt":"2009-07-06T14:52:07","slug":"eurusd-pulls-back-sharply-towards-bottom-end-support","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/06\/eurusd-pulls-back-sharply-towards-bottom-end-support\/","title":{"rendered":"EUR\/USD Pulls Back Sharply Towards Bottom-End Support"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is starting off the week on a negative note as investors seemingly price in a troublesome earnings season.\u00a0 We don\u2019t have any news moving the markets other than the EU\u2019s disappointing Sentix investor confidence number.\u00a0 The Cable is faring worse than the EUR\/USD, and is also moving on little to no news.\u00a0 Therefore, we conclude investors are giving into the downside as they lose some confidence in regards to the sustainability of the global economic recovery.\u00a0 Crude and the S&P futures are also logging substantial losses Monday, reflecting a lack of confidence in the 2nd quarter earnings season.\u00a0 As a result, the tug of war may be swinging in favor of the bears.\u00a0 However, before investors jump to conclusions, we will have to see how the EUR\/USD interacts with our new 2nd tier uptrend line.\u00a0 If this trend line doesn\u2019t hold, we could witness a contraction towards key June lows and our new 1st tier uptrend line.<\/p>\n

Meanwhile, the S&P futures are playing with fire again as they break from their own June lows.\u00a0 We expect the EUR\/USD to experience a tight positive correlation with U.S. equities this week since investors will receive a relatively light load economic data from both the EU and U.S.\u00a0 The focus will be on the U.S. earnings season which kicks off Wednesday with Alcoa.\u00a0 The 2nd quarter performance of U.S. corporations and their guidance for the 3rd quarter should be critical for the near-term direction of U.S. equities.\u00a0 Investors will be paying close attention to the corporate outlook to see whether officers believe the economic recovery has legs.\u00a0 Hence, the next few trading sessions could end up being an important turning point concerning trend for the U.S. Dollar.<\/p>\n

Today\u2019s development in the EUR\/USD is certainly disconcerting, and investors should monitor whether volume picks up to the downside.\u00a0 Bulls appear to be giving in after weeks of battle, and it will be interesting to see where the new bottom forms.\u00a0 A near-term retest of our 1.3826 support seems likely, and if the bottom-end of our new support structure doesn\u2019t hold, the EUR\/USD may enter a more prolonged downturn.\u00a0 On the other hand, the bulls have an opportunity to salvage the uptrend at our 2nd tier uptrend line, though the near-term momentum clearly lies in favor of the bears.<\/p>\n

Present Price: 1.3895<\/p>\n

Resistances: 1.3923, 1.3942, 1.3964, 1.3985, 1.4018<\/p>\n

Supports: 1.3889, 1.3865, 1.3848, 1.3826, 1.3802<\/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 starting off the week on a negative note as investors seemingly price in a troublesome earnings season.\u00a0 We don\u2019t have any news moving the markets other than the EU\u2019s disappointing Sentix investor confidence number.\u00a0 The Cable is faring worse than the EUR\/USD, and is also moving on little … <\/p>\n

Continue reading “EUR\/USD Pulls Back Sharply Towards Bottom-End Support”<\/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-2802","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2802","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=2802"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2802\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}