{"id":4814,"date":"2009-11-13T12:01:18","date_gmt":"2009-11-13T17:01:18","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4814"},"modified":"2009-11-13T12:01:18","modified_gmt":"2009-11-13T17:01:18","slug":"eurusd-pulls-back-following-weak-eu-gdp-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/13\/eurusd-pulls-back-following-weak-eu-gdp-data\/","title":{"rendered":"EUR\/USD Pulls Back Following Weak EU GDP Data"},"content":{"rendered":"

By Fast Brokers <\/strong>– The EUR\/USD is pulling back today after bouncing off of our previous 1st tier uptrend line.\u00a0 The EUR\/USD failed to break through our previous 2nd and 3rd tier downtrend lines on Thursday, and instead opted register a brisk decline despite a lack of econ data economic data besides EU Industrial Production (0.3% vs. 0.6% expected).\u00a0 However, today\u2019s wave of econ data shows that yesterday\u2019s pullback was warranted.\u00a0 German and French Prelim GDP numbers both came in below analyst expectations while the EU Flash GDP figure printed weak as well (0.4% vs. 0.6% expected).\u00a0 Today\u2019s wave of disappointing data tacks onto Tuesday\u2019s negative ZEW Economic Sentiment numbers.\u00a0 Hence, this week\u2019s data flow indicates that the EU\u2019s economic recovery is occurring at a more gradual rate than anticipated.\u00a0 This realization is putting relative downward pressure on the Euro, as exhibited by the downturn taking place in the EUR\/GBP following a consolidation period.\u00a0 Hence, the ECB may be hard pressed to tighten its alternative liquidity measures come December, although we will have to see how upcoming data points pan out.<\/p>\n

Meanwhile, yesterday\u2019s better than expected U.S. Unemployment Claims data failed to excite investors, indicating the bulls may be running out of steam.\u00a0 We\u2019re currently waiting on Prelim UoM Consumer Sentiment.\u00a0 However, we have already received data showing the U.S. Trade Balance widened more than anticipated and import prices came in 4 basis points below analyst expectations.\u00a0 Therefore, a weak consumer sentiment number could drive the S&P futures into negative territory today and possibly extend intraday lows in the EUR\/USD since the two investment vehicles are positively correlated.\u00a0 Despite present weakness in the EUR\/USD, the currency pair does have a few more technical cushions to fall back on should today\u2019s pullback accelerate.<\/p>\n

We\u2019ve initiated three new uptrend lines to go along with our previous 1st tier uptrend line (now our 4th).\u00a0 Our new uptrend lines are tightly spaced, indicated there could be some heavy support around this zone should it be tested.\u00a0 In addition to our new uptrend lines, the EUR\/USD also has 11\/06 and 11\/02 lows serving as technical cushions along with November lows should they be reached.\u00a0 As for the topside, we\u2019ve readjusted our downtrend lines to compensate for present weakness.\u00a0 Therefore, the EUR\/USD still faces multiple downtrend lines along with 11\/05 and 10\/15 highs.\u00a0 Meanwhile, the currency pair is drifting further away from its highly psychological 1.50 level, making accelerated topside movements more difficult to attain.<\/p>\n

Monday\u2019s trading session will kick off with a bang as we receive Japan\u2019s Prelim GDP, EU\u2019s CPI, and Retail Sales data from the U.S.\u00a0 As a result, recent volatility could carry over into next week\u2019s trading session.\u00a0 More weaker than expected econ data results, particularly U.S. Retail Sales, could place further downward pressure on the EUR\/USD and test the patience of the currency pair\u2019s uptrend lines in the process.<\/p>\n

Present Price: 1.4848<\/p>\n

Resistances: 1.4883, 1.4907, 1.4934, 1.4950, 1.4966, 1.4987<\/p>\n

Supports: 1.4839, 1.4822, 1.4811, 1.4793, 1.4779, 1.4764, 1.4729<\/p>\n

Psychological: 1.50, November Highs and Lows<\/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 pulling back today after bouncing off of our previous 1st tier uptrend line.\u00a0 The EUR\/USD failed to break through our previous 2nd and 3rd tier downtrend lines on Thursday, and instead opted register a brisk decline despite a lack of econ data economic data besides EU Industrial Production … <\/p>\n

Continue reading “EUR\/USD Pulls Back Following Weak EU GDP Data”<\/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-4814","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4814","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=4814"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4814\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}