{"id":4377,"date":"2009-10-22T10:58:26","date_gmt":"2009-10-22T15:58:26","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4377"},"modified":"2009-10-22T10:58:26","modified_gmt":"2009-10-22T15:58:26","slug":"eurusd-battles-with-1-50","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/22\/eurusd-battles-with-1-50\/","title":{"rendered":"EUR\/USD Battles with 1.50"},"content":{"rendered":"

By Fast Brokers <\/strong>– The EUR\/USD is back wrestling with the highly psychological 1.50 level after breaking through the barrier yesterday.\u00a0 We view yesterday\u2019s movement as an important technical development since we previously explained how 1.50 represents our final topside barrier before 1.55.\u00a0 Hence, we could be on the brink of another near-term breakout in the currency pair should tomorrow\u2019s EU PMI data print well.\u00a0 On a cautionary note, headwinds are gaining strength due to growing psychological forces.\u00a0 The ECB has heightened its rhetoric regarding its concern about a weaker Dollar.\u00a0 Though the ECB is all talk right now, the central bank may become proactive should the Fed neglect to make a concerted effort to tighten its belt, so to speak.\u00a0 Meanwhile, China\u2019s economic data came in around analyst expectations today and investors are a bit disappointed that there wasn\u2019t a topside surprise as we\u2019ve become accustomed to.\u00a0 Furthermore, hawkish sentiment is brewing once again in China since investors are becoming increasingly concerned that excess liquidity is creating asset bubbles.\u00a0 The change in tone is worth noting since investors are uncertain how a tightening of liquidity in China would impact the global economic recovery.\u00a0 However, the government appears content with its current monetary policy and a shift likely wouldn\u2019t come until 2010.\u00a0 Today\u2019s EU Current Account data certainly doesn\u2019t allay fears that an appreciating Euro will choke the EU\u2019s economic recovery.\u00a0 The sharp reversal in the Current Account shows exports are suffering due to a strong Euro and high unemployment in developed nations.\u00a0 Therefore, tomorrow\u2019s PMI and German Ifo Business Climate data could determine whether investors are comfortable sending the Euro even higher despite psychological and now fundamental headwinds.\u00a0 Even though there are topside psychological forces beginning to work against the EUR\/USD, investors should also take note that the Beige Book confirmed the Fed has no plans for tightening its own belt any time in the near future.\u00a0 Therefore, it seems the ECB will need to take action should it want to reverse the EUR\/USD\u2019s medium-term uptrend.<\/p>\n

As for the time being, the EUR\/USD\u2019s near-term and medium-term uptrends are intact and the remainder of the week is all about PMI data and Q3 earnings.\u00a0 Fundamentals would likely trump negative psychological forces should earnings continue to roll in positively while tomorrow\u2019s PMI numbers top expectations.\u00a0 However, negative developments in either could send the currency pair reeling towards weekly lows.\u00a0 Meanwhile, investors should keep an eye on the S&P futures since they have failed to break through their psychological 1100 level.\u00a0 Any considerable downward pressure in U.S. equities would likely send investors towards the safe haven of the Dollar.\u00a0 Investors should pay particularly close attention to our 1st tier uptrend line and the psychological 1050 level.\u00a0 Overall, the markets are still trying to make up their minds regarding whether to continue this year\u2019s impressive bull run.\u00a0 Technicals continue to support this belief, and until positive technicals deteriorate the EUR\/USD\u2019s uptrend is in place.<\/p>\n

Technically speaking, the EUR\/USD\u2019s topside barriers are the psychological 1.50 level, intraday highs, and our makeshift 3rd tier downtrend line.\u00a0 As for the downside, the currency pair has several technical cushions waiting nearby, beginning with our multiple uptrend lines along with 10\/21 and 10\/19 lows.<\/p>\n

Present Price: 1.4997<\/p>\n

Resistances: 1.5021, 1.5052, 1.5086, 1.5127, 1.5146<\/p>\n

Supports: 1.4981, 1.4942, 1.4921, 1.4880, 1.4860, 1.4834<\/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 is back wrestling with the highly psychological 1.50 level after breaking through the barrier yesterday.\u00a0 We view yesterday\u2019s movement as an important technical development since we previously explained how 1.50 represents our final topside barrier before 1.55.\u00a0 Hence, we could be on the brink of another near-term breakout in … <\/p>\n

Continue reading “EUR\/USD Battles with 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-4377","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4377","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=4377"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4377\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}