{"id":4998,"date":"2009-11-27T09:10:26","date_gmt":"2009-11-27T14:10:26","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4998"},"modified":"2009-11-27T09:10:26","modified_gmt":"2009-11-27T14:10:26","slug":"eurusd-sells-off-on-dubai-news","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/11\/27\/eurusd-sells-off-on-dubai-news\/","title":{"rendered":"EUR\/USD Sells Off On Dubai News"},"content":{"rendered":"

By Fast Brokers <\/strong>– The EUR\/USD is tumbling towards 11\/20 lows after breaking through October lows and surging towards 1.5140.\u00a0 Today\u2019s whipsaw movement comes in reaction to a broad-based exit from the risk trade in reaction to news from Dubai.\u00a0 As most investors know by now, Dubai World is requesting a debt restructuring of what could be up to $80 billion of credit.\u00a0 Although actual losses incurred are presently unknown, some European and UK banks could have considerable exposure.\u00a0 This week\u2019s news concerning Dubai\u2019s debt has shocked FX and equity markets as investors worry that the development may indicate forthcoming problems from other emerging economies.\u00a0 As a result, Asian markets have been under intense selling pressure, and European\/U.S. equities look set to open sharply lower.\u00a0 Meanwhile, the FX markets are experiencing a broad based appreciation of the Dollar and Yen as gold crashes back below $1150\/oz.\u00a0 Hence, it seems short-sellers have finally received the psychological trigger they were waiting for to unwind the bull-run in the risk trade.\u00a0 The question now becomes whether equities and currencies can stabilize before heading below more meaningful technical levels.<\/p>\n

As for the EUR\/USD, the Euro\u2019s present relative strength is helping the currency pair to hold up above 11\/20 lows along with our 1st and 2nd tier uptrend lines.\u00a0 Wednesday\u2019s surge past October lows was a very bullish move, allowing the EUR\/USD to weather today\u2019s storm thus far.\u00a0 As a result, both the EUR\/GBP and EUR\/AUD are performing rather well.\u00a0 However, the EUR\/USD may be forced to follow suit should equities and other major Dollar crosses continue their downward movements.\u00a0 That being said, investors should keep an eye out for our 1st tier uptrend line should it be tested.\u00a0 Our 1st tier runs through November lows.\u00a0 Hence, a movement below the 1st tier may indicate a more protracted pullback towards the 1.460 area.\u00a0 As for the topside, the EUR\/USD faces multiple downtrend lines once again along with the psychological 1.50 level.<\/p>\n

Meanwhile, it will be interesting to see whether the S&P futures can recover some of their pre-market losses as investors digest the Dubai news along with Thanksgiving turkey.\u00a0 Despite the investor uncertainty spreading throughout the community at the moment, the ultimate sustainability of Dollar weakness and equity strength could likely rely upon next week\u2019s econ data along with the RBA\u2019s meeting late Monday EST and the ECB\u2019s central bank meeting on Thursday.\u00a0 Hence, the EUR\/USD may be able to hold above 11\/20 lows and our 1st tier uptrend line as investors await a confirmation from econ data and central bank policies.<\/p>\n

Present Price: 1.4854<\/p>\n

Resistances: 1.4860, 1.4886, 1.4904, 1.4920, 1.4946, 1.4970, 1.4999<\/p>\n

Supports: 1.4843, 1.4826, 1.4808, 1.4797, 1.4771, 1.4754, 1.4723<\/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 tumbling towards 11\/20 lows after breaking through October lows and surging towards 1.5140.\u00a0 Today\u2019s whipsaw movement comes in reaction to a broad-based exit from the risk trade in reaction to news from Dubai.\u00a0 As most investors know by now, Dubai World is requesting a debt restructuring of what … <\/p>\n

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