{"id":4345,"date":"2009-10-20T09:59:03","date_gmt":"2009-10-20T14:59:03","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4345"},"modified":"2009-10-20T09:59:03","modified_gmt":"2009-10-20T14:59:03","slug":"eurusd-consolidates-after-taking-another-swing-at-1-50","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/20\/eurusd-consolidates-after-taking-another-swing-at-1-50\/","title":{"rendered":"EUR\/USD Consolidates after Taking another Swing at 1.50"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD has failed to top 1.50 once again and the level is having as much psychological influence as we anticipated.\u00a0 1.50 separates the EUR\/USD from consolidation and exciting near-term gains.\u00a0 The currency pair has toppled the rest of our foreseeable near-term obstacles, leaving 1.50 as the final test for the bulls.\u00a0 Meanwhile, the Cable has approached 1.65 and is a close downtrend line away from making another run itself.\u00a0 Furthermore, the S&P futures are battling 1100 while crude stares down $80\/bbl.\u00a0 Not to mention the USD\/JPY is trading just around its highly psychological 90 level.\u00a0 Hence, we are clearly at a critical juncture in terms of the longevity of the present bull market.\u00a0 Technicals are pointing in favor of a continuation of the uptrend, while fundamentals are sending mixed signals.\u00a0 German and U.S. PPI data came in below analyst expectations, indicating the massive injections of liquidity have not triggered inflation yet.\u00a0 Therefore, the ECB, BoE, and the Fed have less incentive to drain their QE packages despite mounting political pressure.<\/p>\n

Trichet and the ECB reiterated their desire for a stronger Dollar, and are hoping the Fed will do its part to counter the Dollar\u2019s demise.\u00a0 If not, the ECB may be inspired to take a more hawkish monetary stance in order to defend the interests of its critical manufacturing hub.\u00a0 Hence, psychological forces are beginning to work against the EUR\/USD\u2019s uptrend.\u00a0 However, the ECB is all talk for right now, and the EUR\/USD may be allowed to head towards 1.55 before the central bank is inclined to take more definitive action.<\/p>\n

Meanwhile, Q3 earnings are printing better than expected, confirming the belief that the global economy is stabilizing.\u00a0 The EU will be quiet on the data-front until Thursday\u2019s Current Account Balance release.\u00a0 The EU\u2019s Current Account turned positive last month for the first time since April 2008.\u00a0 Investors will be looking for another optimistic release of 4.3 Billion.\u00a0 However, the more important EU releases will be the Friday\u2019s wave of PMI data.\u00a0 For the time being, investors will be paying particularly close attention to BoE Governor King\u2019s public address this afternoon along with and important set of China econ data Wednesday night EST.\u00a0 China\u2019s upcoming data releases could be the make or break in regards to the continuation of the EUR\/USD\u2019s uptrend.\u00a0 Positive China econ data would likely further encourage investors to put their money into higher risk trades such as the EUR\/USD and AUD\/USD.\u00a0 Since we are expecting China to outperform, the EUR\/USD may very well experience another leg up barring any hawkish commentary from the ECB.<\/p>\n

Technically speaking, recent behavior of the EUR\/USD and its correlations is more supportive of further movements to the topside than the downside.\u00a0 However, tides can change quickly, so investors should be on their toes since we are at a critical juncture across the board.\u00a0 The EUR\/USD\u2019s current topside obstacles are the psychological 1.50 level and our three downtrend lines.\u00a0 As for the downside, the currency pair has multiple uptrend lines serving as technical cushions along with 10\/19 and 10\/13 lows.<\/p>\n

Present Price: 1.4970<\/p>\n

Resistances: 1.4981, 1.5013, 1.5052, 1.5086, 1.5127, 1.5146<\/p>\n

Supports: 1.4942, 1.4921, 1.4880, 1.4860, 1.4834, 1.4800<\/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 has failed to top 1.50 once again and the level is having as much psychological influence as we anticipated.\u00a0 1.50 separates the EUR\/USD from consolidation and exciting near-term gains.\u00a0 The currency pair has toppled the rest of our foreseeable near-term obstacles, leaving 1.50 as the final test for the … <\/p>\n

Continue reading “EUR\/USD Consolidates after Taking another Swing at 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-4345","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4345","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=4345"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4345\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}