{"id":4000,"date":"2009-09-24T10:17:04","date_gmt":"2009-09-24T15:17:04","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4000"},"modified":"2009-09-24T10:17:04","modified_gmt":"2009-09-24T15:17:04","slug":"eurusd-consolidates-as-cable-implodes","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/24\/eurusd-consolidates-as-cable-implodes\/","title":{"rendered":"EUR\/USD Consolidates as Cable Implodes"},"content":{"rendered":"

By Fast Brokers<\/strong> – Broad-based strength in the Dollar and U.S. equities is dragging and the EUR\/USD is consolidating below September highs in reaction.\u00a0 We recognize technically significant pullbacks in crude and the Cable, indicating a more debilitating downturn may be approaching.\u00a0 Meanwhile, the S&P futures are sinking below our 2nd tier uptrend line, and are looking to test our important 1st tier uptrend line.\u00a0 The Euro continues to flex a relative strength despite Germany\u2019s Ifo Business Climate coming in shy of analyst expectations.\u00a0 Today\u2019s business climate release combines with negatively mixed EU PMI data on Wednesday.\u00a0 Additionally, U.S. Existing Home Sales registered a surprising decline this morning.\u00a0 In all, we are witnessing a slowdown in broad economic indicators around the globe.\u00a0 It seems the global economic recovery has hit a speed bump.\u00a0 The retraction is taking a bite out of investor sentiment today.\u00a0 Now the question becomes whether this is a minor speed bump on the path to recovery, or the beginning of a double dip recession as some analysts have been predicting.\u00a0 While we wouldn\u2019t rule out the latter, it is clearly too early to call.\u00a0 We also wouldn\u2019t give up on the EUR\/USD\u2019s near-term uptrend since the currency pair has several uptrend lines to fall back on.\u00a0 For the time being, investors should keep an eye on the S&P futures as a true barometer.\u00a0 Any significant technical deterioration in the S&P would likely drag the EUR\/USD lower with it.\u00a0 Conversely, resilience of the S&P futures at our 1st tier uptrend line would hold the ship together.\u00a0 Meanwhile, the Euro should continue to exercise its relative strength as long as the Fed stands pat and the BoE exhibits such a potent dovish behavior monetarily.\u00a0 Regardless, investors should certainly monitor the situation closely.<\/p>\n

Technically speaking, the EUR\/USD has one more tough area of resistance before taking another large leg up.\u00a0 8\/21\/08 highs and the 8\/12\/08-8\/13\/08 consolidation represent a zone of strong technical resistance, especially since they revolve around the highly psychological 1.50 level.\u00a0 That being said, the EUR\/USD may have limited room to the topside for the immediate-term.\u00a0 However, an eclipse of these levels on a boost in volume could ignite another impressive rally in the currency pair.\u00a0 As for the downside, the EUR\/USD has multiple uptrend lines serving as technical cushions along with weekly lows and the psychological 1.45 level.\u00a0 Therefore, the EUR\/USD has several lines of defense to the downside.\u00a0 Though the uptrend is intact, we are initiating a neutral outlook on the EUR\/USD as we monitor the behavior of the Dollar and U.S. equities.<\/p>\n

Present Price: 1.4719<\/p>\n

Resistances: 1.4724, 1.4725, 1.4780, 1.4798, 1.4822, 1.4841<\/p>\n

Supports: 1.4703, 1.4678, 1.4656, 1.4634, 1.4611<\/p>\n

Psychological: 1.45, 1.50<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/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 – Broad-based strength in the Dollar and U.S. equities is dragging and the EUR\/USD is consolidating below September highs in reaction.\u00a0 We recognize technically significant pullbacks in crude and the Cable, indicating a more debilitating downturn may be approaching.\u00a0 Meanwhile, the S&P futures are sinking below our 2nd tier uptrend line, and … <\/p>\n

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