{"id":3414,"date":"2009-08-20T11:20:13","date_gmt":"2009-08-20T16:20:13","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3414"},"modified":"2009-08-20T11:20:13","modified_gmt":"2009-08-20T16:20:13","slug":"eurusd-awaits-fridays-wave-of-pmi-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/20\/eurusd-awaits-fridays-wave-of-pmi-data\/","title":{"rendered":"EUR\/USD Awaits Friday\u2019s Wave of PMI Data"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD jumped over our 3rd tier uptrend and 2nd tier downtrend lines despite very disappointing German PPI and EU Current Account numbers yesterday.\u00a0 Germany\u2019s collapse in PPI adds onto last week\u2019s decline in EU CPI.\u00a0 Hence, EU prices are freefalling while producer prices decline at a faster rate than consumer prices.\u00a0 Therefore, the ECB may be inclined to inject more liquidity since they have held a relatively neutral monetary policy stance while the BOE takes measures to re-inflate the Pound.\u00a0 In regards to the surprise decline in the EU\u2019s Current Account, this implies an outflow and consequently increase in supply of Euros since the EU\u2019s imports outnumber its exports.\u00a0 Regardless of yesterday\u2019s negative data points, investors snapped up the Euro amid a flight from the Dollar.<\/p>\n

We notice a sizeable pullback in the USD\/JPY taking place while the GBP\/USD and gold drag with the EUR\/USD.\u00a0 Keep in mind these movements are occurring with the S&P futures hovering around par in the wake of an increase in weekly U.S. Unemployment Claims.\u00a0 Hence, the EUR\/USD is basking in Dollar negativity stemming from words of caution from it seems investors are making a slight return to safety in the Dollar with global economic uncertainty creeping in.\u00a0 However, heavyweights Warren Buffett and El-Erian continue their warnings that the U.S. Dollar could be stuck between a rock and a hard place if the Federal Reserve doesn\u2019t tighten liquidity at the appropriate time.\u00a0 As a result, it\u2019s possible the EUR\/USD could receive some psychological support as investors contemplate an unknown future.<\/p>\n

Technically speaking, activity favored the buy-side yesterday on the 1-hour.\u00a0 However, the EUR\/USD failed to eclipse August 13-14 highs, putting near-term momentum in favor of the downside considering the size of the 8\/13-8\/17 pullback.\u00a0 The EUR\/USD certainly isn\u2019t clear of its downtrend considering the currency pair\u2019s back in the thick of its 7\/20-7\/28 trading zone.\u00a0 The lid of this trading range should prove to be worthy near-term resistance along with our 3rd tier downtrend line.\u00a0 Investors will likely refrain from breaking these technical obstacles with a wave of EU PMI data coming on Friday.\u00a0 As for the downside, the EUR\/USD has several strong trading range supports and all three of our uptrend lines waiting well below present price.\u00a0 It will be interesting to see how investors treat the Dollar should another pullback in U.S. equities ensue.<\/p>\n

Present Price: 1.4214<\/p>\n

Resistances: 1.4236, 1.4248, 1.4259, 1.4268, 1.4278<\/p>\n

Supports: 1.4200, 1.4188, 1.4180, 1.4163, 1.4154<\/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 jumped over our 3rd tier uptrend and 2nd tier downtrend lines despite very disappointing German PPI and EU Current Account numbers yesterday.\u00a0 Germany\u2019s collapse in PPI adds onto last week\u2019s decline in EU CPI.\u00a0 Hence, EU prices are freefalling while producer prices decline at a faster rate than consumer … <\/p>\n

Continue reading “EUR\/USD Awaits Friday\u2019s Wave of PMI 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-3414","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3414","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=3414"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3414\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}