{"id":5043,"date":"2009-12-01T13:29:19","date_gmt":"2009-12-01T18:29:19","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5043"},"modified":"2009-12-01T13:29:19","modified_gmt":"2009-12-01T18:29:19","slug":"eurusd-clears-monday-highs-on-back-of-risk-trade","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/12\/01\/eurusd-clears-monday-highs-on-back-of-risk-trade\/","title":{"rendered":"EUR\/USD Clears Monday Highs on Back of Risk Trade"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is trading in the green again today as the risk trade regains some of its positive momentum.\u00a0 The combination of in line Chinese Manufacturing PMI data and the RBA raising its benchmark rate by another 25 basis points is giving investors confidence that economic performances remain on the path to recovery.\u00a0 Although the RBA signaled that its latest rate increase places the central bank\u2019s monetary policy in coordination with expected inflation, the RBA\u2019s vote of confidence is enough to refuel the risk trade.\u00a0 Naturally, the EUR\/USD is benefitting from today\u2019s events since the Euro was already flexing a relative strength despite the debt issue in Dubai, which now appears not as severe as previously speculated.\u00a0 The EU released a bit of data of its own, including a positive Germany Unemployment Change figure along with an expected 9.8% EU Unemployment Rate.\u00a0 German Retail Sales did print a basis point shy of expectations, although this doesn\u2019t seem to be having too large of an impact on the currency pair at the moment.\u00a0 Meanwhile, investors should note that gold is knocking at $1200\/oz while the S&P consolidates above 1100.\u00a0 Hence, the EUR\/USD\u2019s positive correlations are strengthening and could be preparing for another leg higher should fundamentals and psychologicals work in favor of the risk trade.<\/p>\n

Technically speaking, the EUR\/USD is creating some space between present price and the psychological 1.50 level.\u00a0 The currency pair has cleared October highs once again and could take a shot at November highs.\u00a0 That being said, investors should monitor the EUR\/USD\u2019s interaction with our 3rd tier downtrend line and 11\/25 highs should they be tested.\u00a0 A breakout beyond these two technical barriers could yield a more accelerated upward movement.\u00a0 As for the downside, the EUR\/USD has multiple uptrend lines serving as technical cushions along with intraday lows and the psychological 1.50 level.<\/p>\n

The EU news wire should be relatively quiet until Thursday\u2019s ECB meeting.\u00a0 At the ECB\u2019s previous press conference, Trichet seemed to have a more aggressive tone in terms of the central banks intentions to unwind alternative liquidity measures.\u00a0 Exactly which liquidity tools and when they would be dismantled remains to be seen.\u00a0 Either way, Thursday\u2019s monetary policy meeting could carry a bit of uncertainty.\u00a0 For the time being, investors should eye the EUR\/USD\u2019s topside technicals along with any developments in the currency pair\u2019s positive correlations.<\/p>\n

Present Price: 1.5076<\/p>\n

Resistances: 1.5082, 1.5097, 1.5117, 1.5133, 1.5154, 1.5168, 1.5117, 1.5133<\/p>\n

Supports: 1.5068, 1.5060, 1.5045, 1.5027, 1.5015, 1.4988, 1.4977<\/p>\n

Psychological: 1.50, November Highs<\/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 trading in the green again today as the risk trade regains some of its positive momentum.\u00a0 The combination of in line Chinese Manufacturing PMI data and the RBA raising its benchmark rate by another 25 basis points is giving investors confidence that economic performances remain on the path … <\/p>\n

Continue reading “EUR\/USD Clears Monday Highs on Back of Risk Trade”<\/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-5043","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5043","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=5043"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5043\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=5043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=5043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=5043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}