{"id":4318,"date":"2009-10-16T12:39:38","date_gmt":"2009-10-16T17:39:38","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4318"},"modified":"2009-10-16T12:39:38","modified_gmt":"2009-10-16T17:39:38","slug":"eurusd-forms-double-top-below-1-50","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/16\/eurusd-forms-double-top-below-1-50\/","title":{"rendered":"EUR\/USD Forms Double Top Below 1.50"},"content":{"rendered":"

By Fast Brokers <\/strong>– The EUR\/USD\u2019s upswing continued yesterday, yet hit a will just beneath the highly psychological 1.50 level as anticipated.\u00a0 The EUR\/USD failed to fully participate in the equity rally and has formed a double top with a pop in volume on a 4 hour down-bar.\u00a0 We notice similar weakness in gold while the EUR\/GBP has been hit with huge losses over the past 24 hours.\u00a0 The best explanation for the Euro\u2019s present weakness is overbought conditions combined with headwinds at 1.50.\u00a0 As we mentioned previously, 1.50 serves as the last noteworthy technical barrier separating the EUR\/USD from accelerated near-term gains towards 1.55.\u00a0 On a positive note, the EUR\/USD is still trading above September highs and has multiple uptrend lines to break its fall.\u00a0 Therefore, there are far fewer obstacles separating the EUR\/USD from the topside than the downside.\u00a0 We\u2019ve attached a few makeshift downtrend lines running through weekly highs to give investors an idea of immediate technical barriers separating present price from intraday highs and 1.50.<\/p>\n

Meanwhile, Q3 earnings and U.S. data are ending the week on a sour note with BofA and GE reporting weaker than expected revenue figures.\u00a0 Furthermore, IBM is selling on the news despite reporting better than forecast.\u00a0 The S&P futures are trading off by nearly 1% in reaction after failing to test their own psychological 1100 level.\u00a0 Therefore, it seems the EUR\/USD\u2019s stronger positive correlations are facing psychological headwinds as well.\u00a0 Regardless, the currency pair made some very bullish moves earlier this week, and there is presently insufficient evidence to contradict this observation.\u00a0 On the other hand, the ECB is increasing its chatter concerning the importance of a stronger Dollar since EU exporters are having trouble shipping products with an appreciated Euro.\u00a0 Hence, if the Dollar were to continue its broad-based devaluation the ECB may be inclined to keep the gates of liquidity open for longer.\u00a0 However, we\u2019re not at that point yet, so investors should keep their attention centered on technicals and fundamentals.<\/p>\n

The EU will be relatively quiet on the data front until late next week, particularly when the union releases Flash PMI data numbers along with Ifo Business Climate data.\u00a0 Until then focus should remain on Q3 earnings and U.S. econ data along with China\u2019s data flow on Wednesday.\u00a0 China has been an engine in the global economic recovery, so Wednesday\u2019s GDP and Industrial Production data could make or break the current risk trade.\u00a0 We believe China\u2019s data will meet or beat and should provide a positive catalyst to global markets.\u00a0 As for the time being, investors should keep an eye on U.S. equities and gold.\u00a0 Further weakness in the S&P futures could apply downward pressure on the EUR\/USD until we get more data.<\/p>\n

Present Price: 1.4878<\/p>\n

Resistances: 1.4905, 1.4946, 1.4981, 1.5013, 1.5052<\/p>\n

Supports: 1.4875, 1.4845, 1.4830, 1.4800, 1.4758, 1.4722<\/p>\n

Psychological: 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\u2019s upswing continued yesterday, yet hit a will just beneath the highly psychological 1.50 level as anticipated.\u00a0 The EUR\/USD failed to fully participate in the equity rally and has formed a double top with a pop in volume on a 4 hour down-bar.\u00a0 We notice similar weakness in gold while … <\/p>\n

Continue reading “EUR\/USD Forms Double Top Below 1.50”<\/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-4318","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4318","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=4318"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4318\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}