{"id":2902,"date":"2009-07-14T10:45:29","date_gmt":"2009-07-14T15:45:29","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2902"},"modified":"2009-07-14T10:45:29","modified_gmt":"2009-07-14T15:45:29","slug":"eurusds-rally-sputters-after-weak-sentiment-and-ip-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/14\/eurusds-rally-sputters-after-weak-sentiment-and-ip-data\/","title":{"rendered":"EUR\/USD\u2019s Rally Sputters after Weak Sentiment and IP Data"},"content":{"rendered":"

By Fast Brokers<\/span> – The EUR\/USD is flat-lining after disappointing economic sentiment and industrial production data from the EU.\u00a0 Disappointing Eco data from both the EU and U.S. are taking the wind out of the rally\u2019s sails.\u00a0 While we forewarned of expecting too much from industrial production, the reversal in economic sentiment delivers a slight blow to the concept of an economic recovery.\u00a0 Thought the German reading of 39.5 is below June\u2019s 44.8 and the expectation of 48, investors will likely keep their emotions in check before seeing next month\u2019s report.\u00a0 Investors are curious whether today\u2019s setback represents a reversal to the downtrend, or a natural bump on the way towards expansion (50+).\u00a0 We notice a spike in volume to the downside on the 1-hour after the U.S. released mixed economic data of its own.\u00a0 The S&P futures registered a similar spike in sell-side volume as investors react negatively to the higher than anticipated PPI and lower than expected core retail sales data points.\u00a0 However, the EUR\/USD is bouncing off of our 2nd tier uptrend line and the currency pair appears to be stabilizing right now.\u00a0 Unfortunately for the bulls, the negative EU numbers come as the currency pair battles the psychological 1.40 level.\u00a0 The EUR\/USD could use all of the help it can get since there are quite a few barriers and trends weighing down on price.<\/p>\n

The EUR\/USD has yet to experience large volume to the upside coupled with a technical move.\u00a0 Therefore, it seems the near-term momentum remains in the downtrend\u2019s corner.\u00a0 The EUR\/USD faces challenging barriers to the upside, including 1.40, July 9th highs, and our 3rd tier downtrend line.\u00a0 Though the EUR\/USD may continue to stabilize, our 3rd tier downtrend is drawing nearer, and the currency pair will need to make a directional decision sooner or later.\u00a0 As for the downside, any reversal below July 10th and\/or July 8th lows on rising volume would raise a red flag.\u00a0 The EUR\/USD has our 1st tier and 2nd tier uptrend lines to fall back on before these lows, so we don\u2019t expect any trend-setting reversals for the time being.\u00a0 The EU will release its CPI reading tomorrow, and after that the EU will be quiet for the remainder of the week on the data front.\u00a0 This leaves the ball in America\u2019s court both data and earnings-wise.\u00a0 Therefore, investors should keep a close watch on the S&P futures for any technical movement to either the upside or downside.<\/p>\n

Present Price: 1.3975<\/p>\n

Resistances: 1.3991, 1.4020, 1.4050, 1.4065, 1.4091<\/p>\n

Supports: 1.3970, 1.3944, 1.3915, 1.3889, 1.3865<\/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 flat-lining after disappointing economic sentiment and industrial production data from the EU.\u00a0 Disappointing Eco data from both the EU and U.S. are taking the wind out of the rally\u2019s sails.\u00a0 While we forewarned of expecting too much from industrial production, the reversal in economic sentiment delivers a slight … <\/p>\n

Continue reading “EUR\/USD\u2019s Rally Sputters after Weak Sentiment and IP Data”<\/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-2902","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2902","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=2902"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2902\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}