{"id":3229,"date":"2009-08-06T10:29:52","date_gmt":"2009-08-06T15:29:52","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3229"},"modified":"2009-08-06T10:29:52","modified_gmt":"2009-08-06T15:29:52","slug":"eurusd-heads-south-towards-our-3rd-tier-uptrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/06\/eurusd-heads-south-towards-our-3rd-tier-uptrend-line\/","title":{"rendered":"EUR\/USD Heads South Towards our 3rd Tier Uptrend Line"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is continuing its pullback as anticipated, stumbling towards our 3rd tier uptrend line as it appears the bulls have exhausted themselves.\u00a0 The ECB kept its monetary policy unchanged, also as anticipated.\u00a0 However, the BOE increased its QE package by $84 billion in order to try and counter deflationary forces.\u00a0 The BOE\u2019s move is spooking FX markets a bit, appreciating the Greenback across the board.\u00a0 Furthermore, gold is consolidating while the S&P hovers around 1000 despite lower than expected weekly unemployment claims.\u00a0 The S&P\u2019s lack of reaction to the Unemployment Claims number shows the present run is just about out of gas.\u00a0 Therefore, continued consolidation with a downward sloping pattern is likely as investors take a deep breath and recoup.\u00a0 However, the break may not last so long since both Britain and the U.S. will release more important economic data tomorrow along with Germany\u2019s m\/m Industrial Production number.<\/p>\n

Speaking of data, a much better than expected Factory Orders number from Germany flew under the radar with the central banks grabbing the spotlight.\u00a0 The return to growth in German Factory Orders is holding steady, an encouraging sign for the EU economy as a whole.\u00a0 The EU is getting a positive piece of data at just the right time considering the underperformance of EU economic Data as of late.\u00a0 A positive German Industrial Production number tomorrow could help the EUR\/USD build some relative strength.\u00a0 After all, the ECB is the central bank sticking to its guns while Britain digs deeper into its pockets to increase liquidity.\u00a0 However, the Euro\u2019s comparative strength may not last long since the BOE\u2019s injection should wear off rather quickly.\u00a0 Furthermore, regardless of any pullbacks, the momentum is still in favor of the uptrend since news and data out of the U.S. and Britain has been resoundingly positive over the past month.<\/p>\n

As for the immediate-term, the EUR\/USD may experience a little more selling pressure with investors cashing in on mixed global data.\u00a0 Therefore, we wouldn\u2019t be surprised to see the currency pair duck down towards our 3rd tier uptrend line.\u00a0 Speaking of which, the EUR\/USD is trading above all three of our uptrend lines with only a makeshift 3rd tier downtrend line clamping down the currency pair.\u00a0 The EUR\/USD remains comfortably above June 3rd and July 28th highs.\u00a0 Hence, the uptrend is clearly in control in the moment, and it would take a large technical downward movement to dislodge the EUR\/USD\u2019s upward momentum.<\/p>\n

Our 3rd tier downtrend line and the psychological 1.45 level appear to be the only near-term barriers separating the EUR\/USD from a retest of December 18th highs.\u00a0 The other factor capping the EUR\/USD\u2019s upward mobility is the S&P\u2019s interaction with 1000.\u00a0 The 1000 area should prove to be a challenging obstacle.\u00a0 The S&P\u2019s ability to leapfrog 1000 should play an important role in the EUR\/USD\u2019s ability to overcome its own barriers to the topside.\u00a0 Therefore, investors should keep a close eye on U.S. equities and Friday\u2019s key employment data.\u00a0 If either the U.S. Unemployment Rate or Non-Farm Employment Change are higher than anticipated the EUR\/USD may experience heightened volatility to the downside.\u00a0 On the other hand, positive employment data would likely provide a strong counterbalancing force.
\nPresent Price: 1.4363<\/p>\n

Resistances: 1.4391, 1.4441, 1.4476, 1.4506, 1.4546<\/p>\n

Supports: 1.4348, 1.4305, 1.4266, 1.4242, 1.4225<\/p>\n

Psychological: 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 is continuing its pullback as anticipated, stumbling towards our 3rd tier uptrend line as it appears the bulls have exhausted themselves.\u00a0 The ECB kept its monetary policy unchanged, also as anticipated.\u00a0 However, the BOE increased its QE package by $84 billion in order to try and counter deflationary forces.\u00a0 … <\/p>\n

Continue reading “EUR\/USD Heads South Towards our 3rd Tier Uptrend 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-3229","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3229","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=3229"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3229\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}