{"id":6790,"date":"2010-02-12T10:45:29","date_gmt":"2010-02-12T15:45:29","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6790"},"modified":"2010-02-12T10:45:29","modified_gmt":"2010-02-12T15:45:29","slug":"eurusd-dives-lower-after-disappointing-gdp-data-and-china","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/12\/eurusd-dives-lower-after-disappointing-gdp-data-and-china\/","title":{"rendered":"EUR\/USD Dives Lower after Disappointing GDP Data and China"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is tumbling lower again with a large down-bar on the 4-hour.\u00a0 The Euro came under selling pressure after Germany\u2019s Prelim GDP printed flat, or 2 basis points below analyst expectations.\u00a0 Additionally, French Prelim Service Payrolls, Italian Prelim GDP, EU Flash GDP and EU Industrial Production all disappointed.\u00a0 The only silver lining in today\u2019s data set was 0.6% GDP growth in France.\u00a0 However, growth in France didn\u2019t prove strong enough to counter overall weakness in the EU, highlighted by a 0.1% EU Flash GDP number.\u00a0 Also troubling is the huge pullback in Industrial Production (-1.7%).\u00a0 Such data reverts back to numbers we saw during the summer of 2009.\u00a0 Meanwhile, China surprised markets by announcing another 50 basis point rate hike in the required reserve ratio.\u00a0 China may be sending a message by tightening liquidity the day before the Chinese New Year, particularly that the government plans on being more fiscally responsible during the year of the tiger.\u00a0 Also, Chinese equity markets will be closed for a week, delaying a reaction from the SCI as the news sinks in.\u00a0 Investors are currently awaiting upcoming retail sales and consumer confidence data from the U.S.\u00a0 Considering the volatility we\u2019ve witnessed in the FX markets thus far today, it wouldn\u2019t be surprising if this data set yields considerable activity in the Dollar and U.S. equities.\u00a0 Strong U.S. economic data could send investors towards the Dollar amid economic uncertainty around the globe.\u00a0 Additionally, weak data releases could also benefit the Dollar as investors run for risk.\u00a0\u00a0 Therefore, it will be interesting to see how the trading session plays out.<\/p>\n

Technically speaking, the EUR\/USD faces topside technical barriers in the form of multiple downtrend lines along with intraday, 2\/8 and 2\/11 highs.\u00a0 As for the downside, the EUR\/USD has multiple uptrend lines serving as technical cushions along with 2\/5 lows and the psychological 1.35 level should it be tested.<\/p>\n

Present Price: 1.3578<\/p>\n

Resistances: 1.3592, 1.3617, 1.3645, 1.3664, 1.3693, 1.3721<\/p>\n

Supports:\u00a0 1.3563, 1.3534, 1.3517, 1.3483, 1.3453, 1.3421<\/p>\n

Psychological: February highs and lows, 1.35<\/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 tumbling lower again with a large down-bar on the 4-hour.\u00a0 The Euro came under selling pressure after Germany\u2019s Prelim GDP printed flat, or 2 basis points below analyst expectations.\u00a0 Additionally, French Prelim Service Payrolls, Italian Prelim GDP, EU Flash GDP and EU Industrial Production all disappointed.\u00a0 The only … <\/p>\n

Continue reading “EUR\/USD Dives Lower after Disappointing GDP Data and China”<\/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-6790","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6790","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=6790"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6790\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6790"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}