{"id":5157,"date":"2009-12-08T11:54:01","date_gmt":"2009-12-08T16:54:01","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2009\/12\/08\/eurusd-sinks-towards-november-lows-as-equities-head-south\/"},"modified":"2009-12-08T11:54:01","modified_gmt":"2009-12-08T16:54:01","slug":"eurusd-sinks-towards-november-lows-as-equities-head-south","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/12\/08\/eurusd-sinks-towards-november-lows-as-equities-head-south\/","title":{"rendered":"EUR\/USD Sinks Towards November Lows as Equities Head South"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is declining as investors exit the risk trade in reaction to Bernanke\u2019s cautious comments yesterday in conjunction with Moody\u2019s warning that the U.S. and UK are testing the patience of their Aaa Ratings.\u00a0 Bernanke attempted to soothe investor excitement stemming from Friday\u2019s much better than expected U.S. employment data, resulting in a sizable Dollar appreciation.\u00a0 Bernanke managed to devalue the Dollar a bit and stabilize equity markets after he stated that the U.S. economy still faces considerable headwinds.\u00a0 That being said, Bernanke is attempting to clarify that the Fed is planning on maintaining its loose monetary policy for the foreseeable future.\u00a0 Hence, the central bank will need further confirmation from economic data before considering shortening its policy timeframe.\u00a0 Meanwhile, Moody\u2019s stated that the UK and U.S. may \u2018test the boundaries\u2019 of their Aaa ratings if they don\u2019t get a handle on their respective budget deficits.\u00a0 The news from Moody\u2019s, in addition to new uncertainty surrounding Dubai\u2019s debt, has managed to trigger a risk-aversion session.\u00a0 As a result, the EUR\/USD, GBP\/USD, USD\/JPY, and gold are all trading in the red.<\/p>\n

The EU releaesd a couple disappointing data points which aren\u2019t helping out the EUR\/USD\u2019s cause.\u00a0 Yesterday German Factory Orders printed -2.7% below analyst expectations (0.6%).\u00a0 The decline in factory orders is likely a symptom of the EUR\/USD\u2019s solid run last month.\u00a0 Furthemore, Germany printed an Industrial Production figure today which was also well beneath analyst expectations (-1.8% vs 1.1% exepcted).\u00a0 Therefore, it seems Germany\u2019s economic productivity is cooling off a bit.\u00a0 The disappointing data points are likely adding to the downward pressure on the EUR\/USD already being inflicted by the aforementioned psychological developments.\u00a0 The EU will be relative quiet on the data wire over the next couple sessions, leaving its movements in the hands of Thursday\u2019s BoE meeting followed be the release of China\u2019s Industrial Production number in the PM EST.<\/p>\n

Technically speaking, the EUR\/USD is currently testing the strength of our 1st tier uptrend line, which could carry some weight since it runs through September lows.\u00a0 However, the currency pair does have some technical cushions resting nearby in the forms of 10\/30 and 11\/03 lows.\u00a0 Furthrmore, the psychological 1.45 level could work in the EUR\/USD\u2019s favor should conditions deteriorate.\u00a0 As for the topside, the EUR\/USD now faces multiple downtrend lines along with 12\/08 and 12\/07 highs.\u00a0 Additionally, the highly psychological 1.50 area should serve as a tough psychological barrier again should it be tested.<\/p>\n

Present Price: 1.4756<\/p>\n

Resistances: 1.4778, 1.4795, 1.4812, 1.4841, 1.4859, 1.4875<\/p>\n

Supports: 1.4754, 1.4738, 1.4715, 1.4682, 1.4672, 1.4650, 1.4631<\/p>\n

Psychological: 1.45, 1.50, November 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 declining as investors exit the risk trade in reaction to Bernanke\u2019s cautious comments yesterday in conjunction with Moody\u2019s warning that the U.S. and UK are testing the patience of their Aaa Ratings.\u00a0 Bernanke attempted to soothe investor excitement stemming from Friday\u2019s much better than expected U.S. employment data, … <\/p>\n

Continue reading “EUR\/USD Sinks Towards November Lows as Equities Head South”<\/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-5157","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5157","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=5157"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/5157\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=5157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=5157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=5157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}