{"id":3504,"date":"2009-08-26T12:14:45","date_gmt":"2009-08-26T17:14:45","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3504"},"modified":"2009-08-26T12:14:45","modified_gmt":"2009-08-26T17:14:45","slug":"eurusd-skids-following-durable-goods-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/08\/26\/eurusd-skids-following-durable-goods-data\/","title":{"rendered":"EUR\/USD Skids Following Durable Goods Data"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is heading south towards the lower end of its weekly trading range after U.S. Core Durable Goods Orders came in two basis points below analyst expectations.\u00a0 The durable goods number is outweighing a better than expected German Ifo Business Climate release.\u00a0 Referring to yesterday\u2019s post, we explained that U.S. demand for durable goods has a strong influence on the EU economy since EU GDP is highly reliant on exports and manufacturing.\u00a0 Hence, investors are sending the EUR\/USD lower since the Core DGO release takes a bite out of the optimism surrounding the concept of an economic recovery.\u00a0 However, the Euro is holding up a lot better than the Pound since Germany\u2019s Ifo Business Climate release continues the theme of stronger than expected economic data from the EU over the past couple weeks.\u00a0 One needs to look no further than the high flying EUR\/GBP for confirmation of a strong Euro.\u00a0 The Euro will be tested tomorrow since the EU will print Germany\u2019s Prelim CPI and the EU region\u2019s M3 Money Supply.\u00a0 Weak CPI growth and a large contraction in the EU\u2019s money supply has been a thorn in the EUR\/USD\u2019s side.\u00a0 Declining prices and the dwindling supply of Euros gives the EU little room to tighten its monetary policy.\u00a0 Hence, the EU\u2019s commitment to keep liquidity in control comes at a cost.<\/p>\n

Meanwhile, the Core DGO number is not the best way to set the table for tomorrow\u2019s key releases, most notably America\u2019s Prelim GDP and Unemployment Claims data.\u00a0 If these two data releases also disappoint, the S&P futures could experience a brisk selloff and result in a broad-based appreciation of the Dollar.\u00a0 However, the continuation of the theme of stronger than expected data from the EU could help the Euro maintain its relative strength.\u00a0 As for today, we could witness continued preference for the Dollar as investors head for safety.\u00a0 However, if New Home Sales come in better than expected later this morning, the EUR\/USD can regain its footing and consolidate ahead of tomorrow\u2019s wave of key economic data.\u00a0 On the other hand, weak New Home Sales would only perpetuate the EUR\/USD\u2019s present pullback.<\/p>\n

The key for the EUR\/USD will be staying above our 1st tier uptrend line.\u00a0 If not, the currency pair could head for its next technical cushion, 8\/20 lows or 1.42.\u00a0 Meanwhile, the EUR\/USD is experiencing multiple trend line inflection points, indicating today\u2019s session could turn out to be a volatile one.\u00a0 Since the session has started off on a sour note, this combination of events may not bode well for the bulls.\u00a0 As for the topside, our 2nd-4th tier downtrend lines continue to serve as important technical barriers preventing a large breakout in the EUR\/USD.\u00a0 Since data is already mixed today, positive New Home Sales data may not be enough to send the EUR\/USD to a break out to the topside.<\/p>\n

Present Price: 1.4264<\/p>\n

Resistances: 1.4283, 1.4297, 1.4308, 1.4327, 1.4347<\/p>\n

Supports: 1.4254, 1.4230, 1.4210, 1.4199, 1.4180<\/p>\n

Psychological: 1.40, 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 heading south towards the lower end of its weekly trading range after U.S. Core Durable Goods Orders came in two basis points below analyst expectations.\u00a0 The durable goods number is outweighing a better than expected German Ifo Business Climate release.\u00a0 Referring to yesterday\u2019s post, we explained that U.S. … <\/p>\n

Continue reading “EUR\/USD Skids Following Durable Goods 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-3504","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3504","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=3504"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3504\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}