{"id":4239,"date":"2009-10-09T10:54:35","date_gmt":"2009-10-09T15:54:35","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4239"},"modified":"2009-10-09T10:54:35","modified_gmt":"2009-10-09T15:54:35","slug":"eurusd-settles-above-thursday-lows-following-french-ip","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/09\/eurusd-settles-above-thursday-lows-following-french-ip\/","title":{"rendered":"EUR\/USD Settles above Thursday Lows Following French IP"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is settling above Thursday lows and our 3rd tier uptrend line after pulling back from Thursday highs.\u00a0 Much better than expected French Industrial Production data is helping buoy the Euro after investors decided to lock in profits earlier.\u00a0 The outperformance of French versus German econ data stems from the negatively mixed PMI numbers we received a couple weeks back.\u00a0 The underperformance of Germany\u2019s economy is likely a key factor driving the ECB to keep liquidity flowing right now.\u00a0 However, the economic versatility of the EU region is keeping the EUR\/USD near our 3rd tier downtrend line and September highs.\u00a0 The currency pair has logged four consecutive higher lows, a positive development technically.\u00a0 In fact, the EUR\/USD peaked just past our 3rd tier downtrend line yesterday before buckling.\u00a0 This shows the EUR\/USD is very close to a technical breakout since our 3rd tier runs through September highs.\u00a0 After September highs all the EUR\/USD has to deal with is the psychological 1.50 level before experiencing accelerated near-term movements to the topside.\u00a0 As for the EUR\/USD\u2019s downside technicals the currency pair has multiple uptrend lines along with 10\/7 and 10\/5 lows serving as cushions.<\/p>\n

Meanwhile, gold and the AUD\/USD are developing new bases and could add onto earlier gains over the next week.\u00a0 However, it remains to be seen whether these strong pulls on the Dollar will experience a little more profit taking before setting a true bottom.\u00a0 That being said, investors should keep in mind that the breakout in gold and the AUD\/USD doesn\u2019t necessarily guarantee a similar topside breakout in the EUR\/USD.\u00a0 The Aussie and EU economies are structured differently and the central banks will approach their exit strategies as they see fit.\u00a0 Though the EUR\/USD\u2019s topside technical barriers are wearing thin they exist nonetheless.\u00a0 Hence, a downward pressure is still hampering larger immediate-term gains.\u00a0 The Euro\u2019s near-term performance ultimately depends on upcoming Q3 earnings results and next week\u2019s econ data from both the EU and U.S.\u00a0 Investors need to see fundamental economic improvements in the EU and encouraging U.S. earnings before committing to a movement towards 1.50 and higher. Additionally, unexpected central bank comments could always jolt the FX markets psychologically.\u00a0\u00a0 The first big econ release from the EU next week will be Tuesday\u2019s German ZEW Economic Sentiment data.\u00a0 Trading should be light on Monday since the U.S. will be off on a banking holiday.<\/p>\n

Present Price: 1.4745<\/p>\n

Resistances: 1.4769, 1.4799, 1.4823, 1.4881, 1.4905, 1.4946<\/p>\n

Supports: 1.4721, 1.4704, 1.4683, 1.4648, 1.4625, 1.4589, 1.4567<\/p>\n

Psychological: September Highs, 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 – The EUR\/USD is settling above Thursday lows and our 3rd tier uptrend line after pulling back from Thursday highs.\u00a0 Much better than expected French Industrial Production data is helping buoy the Euro after investors decided to lock in profits earlier.\u00a0 The outperformance of French versus German econ data stems from the … <\/p>\n

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