{"id":3669,"date":"2009-09-08T11:36:28","date_gmt":"2009-09-08T16:36:28","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3669"},"modified":"2009-09-08T11:36:28","modified_gmt":"2009-09-08T16:36:28","slug":"eurusd-flies-as-fx-markets-come-to-life","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/08\/eurusd-flies-as-fx-markets-come-to-life\/","title":{"rendered":"EUR\/USD Flies as FX Markets Come to Life"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is screaming higher and we are witnessing the return to volatility forewarned by the multiple inflection points of our trend lines on both the EUR\/USD and GBP\/USD. Investors started the fall with the bang and we may finally be The Dollar is depreciating swiftly across the board as investors react to the surge in gold and a wave of statements predicting a large, medium-term flight from the Dollar due to the massive liquidity injected into the system to abate the credit crunch. The recent gold rush has proven to be a signal that investors are eager to divest from the Dollar in fear that hyper inflation may be around the bend. While we were speculating China might bring the topic of a new monetary standard to the forefront at the G20 meeting, it seems the global economy as a whole is beginning to step in unison regarding this very sensitive issue. Today\u2019s reaction in the FX markets is a fundamental shift because investors are beginning to trade on the psychology of a resoundingly weaker Dollar instead of focusing on economic data. These two developments are energizing the bulls and giving them ammunition to finally select a new direction. Today\u2019s movements are a resounding technical message with the EUR\/USD and GBP\/USD rising in unison as the USD\/JPY retests previous September lows.<\/p>\n

The EUR\/USD has broken through our important 3rd tier downtrend line and is presently testing the psychological 1.45 level. The currency pair is setting fresh 2009 highs and appears to be leaving the August trading range behind. While the EUR\/USD could experience a little hesitation at 1.45 in light of the extent of today\u2019s upward movement, it seems the currency pair is headed for a new leg higher. We left our trend lines as is on our chart for today so you can view the currency pair\u2019s reaction to the inflection points. All we need is a confirmation in heightened buy-side volume to solidify a new near-term uptrend. The next technical resistances to the topside are the EUR\/USD\u2019s psychological 1.45 level and December 2008 highs. As for the downside, August highs should serve as a support should they be tested.<\/p>\n

Germany released disappointing Industrial Production number today and is taking a bite out of the Euro\u2019s relative strength considering Britain\u2019s Manufacturing Production data eclipsed analyst expectations. Volatility should only heat up as the week progresses considering tomorrow\u2019s release of the Beige Book and the wealth of U.S., Chinese, and British economic news on Thursday. China\u2019s Industrial Production number will be in focus since the recovery\u2019s attention has been pinpointed on the resilience of China\u2019s economy during the downturn. Any further cooling in China\u2019s economic growth could take some wind out of the EUR\/USD\u2019s sails. On the other hand, a continual rise in China\u2019s Industrial Production would only lead investors further away from the Dollar. Regardless, the EUR\/USD\u2019s movement today is a strong technical indicator in favor of the uptrend and we could see gains accelerate over the near to medium-term.<\/p>\n

Present Price: 1.4479<\/p>\n

Resistances: 1.4480, 1.4506, 1.4525, 1.4546, 1.4582<\/p>\n

Supports: 1.4454, 1.4430, 1.4408, 1.4388, 1.4363<\/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 screaming higher and we are witnessing the return to volatility forewarned by the multiple inflection points of our trend lines on both the EUR\/USD and GBP\/USD. Investors started the fall with the bang and we may finally be The Dollar is depreciating swiftly across the board as investors … <\/p>\n

Continue reading “EUR\/USD Flies as FX Markets Come to Life”<\/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-3669","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3669","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=3669"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3669\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}