{"id":5903,"date":"2010-01-15T13:24:38","date_gmt":"2010-01-15T18:24:38","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=5903"},"modified":"2010-01-15T13:24:38","modified_gmt":"2010-01-15T18:24:38","slug":"eurusd-tumbles-amid-risk-aversion","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/15\/eurusd-tumbles-amid-risk-aversion\/","title":{"rendered":"EUR\/USD Tumbles Amid Risk Aversion"},"content":{"rendered":"

By Fast Brokers <\/strong>– The Euro logged large losses today as Merkel and Trichet continue to emit words of caution concerning the state of Greece\u2019s troubled economy.\u00a0 Meanwhile, we noticed signs of tighter liquidity in China dragged the AUD\/USD lower as investors speculated that a slowdown in China could decrease demand for Australia\u2019s exports.\u00a0 Furthermore, U.S. economic data printed poorly today, adding onto the risk-aversion we witnessed earlier in the trading session.\u00a0 We recognize declines in gold and the S&P futures as well.\u00a0 Hence, today\u2019s pullback in risk-oriented investment vehicles is wide spread and the Euro is leading the way.\u00a0 The extent of the Euro\u2019s weakness is highlighted by a huge leg down in the EUR\/GBP.\u00a0 Data wise, although EU Core CPI printed a basis point hotter than analyst expectations, the EU Trade Balance came in surprisingly weak.\u00a0 Therefore, it seems demand for EU exports is waning, certainly not a helpful fundamental development considering the downward pressure on the Euro today.\u00a0 On the other hand, a pickup in Core CPI could hold the ECB off from increasing liquidity since EU prices are stabilizing.\u00a0 However, Trichet\u2019s comments at this week\u2019s ECB press conference were a bit more dovish than last month.\u00a0 Hence, investors are beginning to speculate that the ECB may hold off on tightening liquidity until 2H.\u00a0 Although the data wire is relatively empty on Monday, the EU will release its German ZEW Economic Sentiment figure on Tuesday.\u00a0 Hence, volatility could continue next week.<\/p>\n

Technically speaking, the EUR\/USD has been driven beneath our 2nd tier uptrend line, a negative technical development.\u00a0 However, the currency pair does have our 1st tier uptrend line waiting below.\u00a0 Our 1st tier uptrend line could prove to be a key test for the EUR\/USD should it be reached since the line runs through previous January lows.\u00a0 As for the topside, the EUR\/USD faces multiple downtrend lines along with 1\/5 and 1\/11 highs along with the psychological 1.45 level.<\/p>\n

Present Price: 1.4367<\/p>\n

Resistances: 1.4400, 1.4427, 1.4460, 1.4474, 1.4499, 1.4520<\/p>\n

Supports:\u00a0 1.4351, 1.4328, 1.4310, 1.4289, 1.4264, 1.444<\/p>\n

Psychological: 1.45, December highs and January lows<\/p>\n

(click to enlarge)<\/p>\n

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

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

Disclaimer:<\/strong> 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> 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 Euro logged large losses today as Merkel and Trichet continue to emit words of caution concerning the state of Greece\u2019s troubled economy.\u00a0 Meanwhile, we noticed signs of tighter liquidity in China dragged the AUD\/USD lower as investors speculated that a slowdown in China could decrease demand for Australia\u2019s exports.\u00a0 Furthermore, … <\/p>\n

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