{"id":6047,"date":"2010-01-20T12:40:52","date_gmt":"2010-01-20T17:40:52","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6047"},"modified":"2010-01-20T12:40:52","modified_gmt":"2010-01-20T17:40:52","slug":"eurusd-crashes-following-negative-comments-concerning-greece","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/01\/20\/eurusd-crashes-following-negative-comments-concerning-greece\/","title":{"rendered":"EUR\/USD Crashes Following Negative Comments Concerning Greece"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is getting pummeled after the IMF\u2019s Director joined the party in issuing a negative comment concerning the state of Greece\u2019s economy.\u00a0 Greece\u2019s poor economic state is hammering the Euro, exemplified by a huge downturn in the EUR\/GBP.\u00a0 Furthermore, the setback in this week\u2019s Economic Sentiment data wasn\u2019t much help.\u00a0 Meanwhile, China\u2019s tighter monetary policy stance is worrying investors that this may have a discernable impact on global growth should the central bank continue its course.\u00a0 During today\u2019s U.S. trading session Building Permits registered an encouraging increase while inflation remained in a sedated state.\u00a0 The bump up in Building Permits has yielded strength in the Dollar so far and gold has taken a step down.\u00a0 Strength in the U.S. economy amid instability in the EU and tightening from China leads investors to favor the Dollar over its major crosses.\u00a0 However, earnings have been negatively mixed thus far.\u00a0 Should this earnings season disappoint this could stabilize the Dollar since investors would expect the Fed to maintain a loose monetary policy.\u00a0 That being said, it seems currencies may continue to behave on their own fundamentals, particularly the Euro until the full ramifications of Greece\u2019s debt problem is realized.\u00a0 Attention will now turn to China\u2019s GPD and Industrial Production data tomorrow.\u00a0 China\u2019s recent efforts to tighten liquidity imply strong economic data coming.\u00a0 While one would expect this to have a positive impact on the risk trade, should China\u2019s economic data far exceed expectations then investors may anticipate China\u2019s tightening to pick up pace, a negative development for the risk trade.\u00a0 Regardless, volatility could remain at a heightened state for the next 24 hours.\u00a0 The EU will release its Flash PMI data set tomorrow.\u00a0 Strong PMI data could help stem the bleeding in the Euro, whereas more weak economic data would likely place even more downward pressure on the currency.<\/p>\n

Technically speaking, we\u2019ve left our downtrend lines on the chart to give investors a clear picture in regards to the extent of the EUR\/USD\u2019s collapse.\u00a0 The EUR\/USD is also dragging below our current 1st tier uptrend line, which runs through August lows, or the 1.38 area.\u00a0 Hence, there could be even more room to the downside over the near-term should the currency pair not hop back above this trend line soon.\u00a0 In the meantime, the psychological 1.40 area could serve as a technical cushion should it be tested.\u00a0 As for the topside, there are multiple downtrend lines we can form considering the pace of the EUR\/USD\u2019s pullback.\u00a0 Hence, the road to recovery looks like an uphill battle.<\/p>\n

Present Price: 1.4135<\/p>\n

Resistances: 1.4146, 1.4165, 1.4191, 1.4224, 1.4247, 1.4274<\/p>\n

Supports:\u00a0 1.4112, 1.4084, 1.4065, 1.4046, 1.4023, 1.3999<\/p>\n

Psychological: 1.40<\/p>\n

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

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong>.<\/a><\/span><\/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 EUR\/USD is getting pummeled after the IMF\u2019s Director joined the party in issuing a negative comment concerning the state of Greece\u2019s economy.\u00a0 Greece\u2019s poor economic state is hammering the Euro, exemplified by a huge downturn in the EUR\/GBP.\u00a0 Furthermore, the setback in this week\u2019s Economic Sentiment data wasn\u2019t much help.\u00a0 … <\/p>\n

Continue reading “EUR\/USD Crashes Following Negative Comments Concerning Greece”<\/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-6047","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6047","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=6047"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6047\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}