{"id":4503,"date":"2009-10-30T11:27:02","date_gmt":"2009-10-30T16:27:02","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4503"},"modified":"2009-10-30T11:27:02","modified_gmt":"2009-10-30T16:27:02","slug":"eurusd-tops-out-below-1027-highs","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/10\/30\/eurusd-tops-out-below-1027-highs\/","title":{"rendered":"EUR\/USD Tops Out Below 10\/27 Highs"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is under some selling pressure today after yesterday\u2019s rally fueled by U.S. Prelim GDP data failed to overcome 10\/27 highs, let alone our 1st tier downtrend line.\u00a0 Additionally, yesterday\u2019s buy-side volume came in well below Tuesday\u2019s pop in sell-side activity.\u00a0 As a result, a negative investor sentiment remains in regards to the performance of riskier investment vehicles.\u00a0 The AUD\/USD, Cable, and gold are also heading south while the USD\/JPY trades higher, indicating a broad-based preference for the Dollar.\u00a0 Although yesterday\u2019s better than expected U.S. Prelim GDP data fueled a risk rally, the bulls were unable to gather enough momentum to overcome topside technical barriers across markets.<\/p>\n

Altogether, the last two weeks of econ data has come in negatively mixed, overshadowing the flashes of recovery we\u2019ve seen from Q3 earnings and encouraging EU PMI data.\u00a0 The EU reported German Retail Sales today, which printed 12 basis points lower than analyst expectations.\u00a0 Hence, yesterday\u2019s drop in the German Unemployment Change didn\u2019t translate into higher rates of consumption.\u00a0 Furthermore, U.S. Personal Spending printed a basis point beneath expectations along with declining prices.\u00a0 Investors should also keep in mind that yesterday\u2019s Unemployment Claims number came in 8k higher than anticipated, yet was overlooked due to the optimism surrounding the GDP data.\u00a0 In other words, indicators highlighting future economic performance in Western economies are implying a sluggish Q4.\u00a0 As a result, the fundamental tools aren\u2019t in place for investors to have enough confidence to lock the EUR\/USD back into its uptrend just yet.<\/p>\n

Technically speaking, this week\u2019s sharp movement below the psychological 1.50 level is a discouraging sign for bulls.\u00a0 However, there remain several uptrend lines we can form, meaning the EUR\/USD has a few technical cushions to rely upon before investors can safely cry bear.\u00a0 The EUR\/USD has four uptrend lines to fall back on along with the psychological 1.45 level should the currency pair take a turn for the worst.\u00a0 Our 2nd tier uptrend line seems to be a key technical since it runs through October lows and likely represents the support separating the EUR\/USD from a retracement towards 1.45.\u00a0 As for the topside, the EUR\/USD now has multiple uptrend lines bearing down on price and the psychological 1.50 level becomes a technical barrier once again.\u00a0 Overall, although the uptrend remains intact, investors should tread carefully since U.S. equities are facing headwinds.<\/p>\n

Present Price: 1.4761<\/p>\n

Resistances: 1.4783, 1.4819, 1.4844, 1.4863, 1.4890, 1.4925<\/p>\n

Supports: 1.4727, 1.4700, 1.4671, 1.4638, 1.4608, 1.4578<\/p>\n

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

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

Market Commentary<\/strong><\/em> <\/span>provided by <\/span>Fast Brokers<\/strong><\/span><\/span>.<\/a><\/p>\n

Disclaimer:<\/strong> <\/span>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> <\/span>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 under some selling pressure today after yesterday\u2019s rally fueled by U.S. Prelim GDP data failed to overcome 10\/27 highs, let alone our 1st tier downtrend line.\u00a0 Additionally, yesterday\u2019s buy-side volume came in well below Tuesday\u2019s pop in sell-side activity.\u00a0 As a result, a negative investor sentiment remains in … <\/p>\n

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