{"id":6545,"date":"2010-02-04T12:37:28","date_gmt":"2010-02-04T17:37:28","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6545"},"modified":"2010-02-04T12:37:28","modified_gmt":"2010-02-04T17:37:28","slug":"eurusd-tumbles-as-ecb-keeps-policy-unchanged","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/04\/eurusd-tumbles-as-ecb-keeps-policy-unchanged\/","title":{"rendered":"EUR\/USD Tumbles as ECB Keeps Policy Unchanged"},"content":{"rendered":"

By Fast Brokers <\/strong>– The EUR\/USD is extending yesterday\u2019s pullback after the ECB kept its monetary policy unchanged as analysts estimated.\u00a0 German Factory Orders printed -2.5% below analyst expectations, adding downward pressure on the EUR\/USD.\u00a0 Investors are also digesting a skyrocketing unemployment rate in New Zealand along with a slight pop in U.S. Unemployment Claims.\u00a0 Hence, negative economic indicators continue to flash around the globe and the Dollar is benefitting as investors route the risk trade.\u00a0 Furthermore, investors should keep in mind that U.S. economic data has been altogether positive before today\u2019s set, so the Dollar has become an ideal hiding place amidst uncertainty.\u00a0 Meanwhile, we recognize a huge bar down in gold, confirming the negative sentiment regarding the risk trade since the precious metal is negatively correlated with the Dollar.\u00a0 Although the EU will release German Industrial Production tomorrow, focus will be on the U.S. with Non-Farm Employment Change and the official Unemployment Rate on the way.\u00a0 Therefore, volatility in the major Dollar pairs could remain at a heightened state as the week comes to a close.\u00a0 It seems like the Dollar is in a win-win situation these days since negative global developments leads investors to the Greenback for safety, whereas positive economic data leads investors to prefer the Dollar over currencies such as the Euro and Pound.\u00a0 Hence, the EUR\/USD could remain under pressure until either EU economic fundamentals turn around or the debt situation in Greece is cleared up.<\/p>\n

Technically speaking, the EUR\/USD faces topside technical barriers in the form of multiple downtrend lines along with intraday, 2\/1, and 2\/3 highs.\u00a0 As for the downside, we\u2019ve created a few new uptrend lines to serve as technical cushions along with previous June 2009 lows.\u00a0 On a negative note, our uptrend lines now run through February levels, or the 1.27 area.\u00a0 Hence, the EUR\/USD\u2019s downturn this month could signal a more lasting, medium-term decline.<\/p>\n

Present Price: 1.3805<\/p>\n

Resistances: 1.3833, 1.3857, 1.3878, 1.3896, 1.3916, 1.3938<\/p>\n

Supports:\u00a0 1.3806, 1.3782, 1.3757, 1.3737, 1.3689<\/p>\n

Psychological: June 2009 lows<\/p>\n

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

(click chart to enlarge)<\/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 EUR\/USD is extending yesterday\u2019s pullback after the ECB kept its monetary policy unchanged as analysts estimated.\u00a0 German Factory Orders printed -2.5% below analyst expectations, adding downward pressure on the EUR\/USD.\u00a0 Investors are also digesting a skyrocketing unemployment rate in New Zealand along with a slight pop in U.S. Unemployment Claims.\u00a0 … <\/p>\n

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