{"id":7926,"date":"2010-03-24T12:40:34","date_gmt":"2010-03-24T16:40:34","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=7926"},"modified":"2010-03-24T12:40:34","modified_gmt":"2010-03-24T16:40:34","slug":"eurusd-plunges-as-portugal-enters-fray","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/03\/24\/eurusd-plunges-as-portugal-enters-fray\/","title":{"rendered":"EUR\/USD Plunges as Portugal Enters Fray"},"content":{"rendered":"

By Fast Brokers <\/strong>– The EUR\/USD has plunged beneath previous March highs in reaction to IMF involvement in Greece\u2019s financial assistance becoming more likely.\u00a0 France is beginning to turn Germany\u2019s way, favoring IMF involvement on a certain level, and not until Greece is unable to attain financing on its own two legs.\u00a0 Investors reacted negatively to the news, sending the EUR\/USD back to levels not seen since May 2009.\u00a0 Adding to the EUR\/USD\u2019s downward momentum was Fitch\u2019s announcement that it is lowering Portugal\u2019s credit rating to AA-.\u00a0 The fear of more PIIGS nations needing financial assistance when the EU has failed to come up with a plan for Greece has sent investors scurrying towards the Dollar for safety.\u00a0 The EUR\/USD had been stuck in a trading range for a while, albeit a wide one, and today\u2019s large pullback could signal that the EUR\/USD is in for yet another leg down.\u00a0 Today\u2019s negative EU debt news had led investors to dismiss an altogether encouraging day of economic data from the EU.\u00a0 The Flash PMI figures and German Ifo Business Climate number showed that economic activity is still on the path to recovery, at least in Germany and France.\u00a0 Although today\u2019s data has been dismissed thus far, it could help the EUR\/USD stabilize once the impacts from today\u2019s negative psychological events exhaust themselves.\u00a0\u00a0 Meanwhile, the Dollar is gaining across the board while gold ducks back below $1100\/oz.\u00a0 Hence, a clear message of risk-aversion has been delivered.\u00a0 U.S. DGO data printed mixed, with the core outperforming while the headline disappointed.\u00a0 Therefore, although auto purchases are cooling, consumption is continuing to show improvement.\u00a0 Investors are presently waiting for U.S. New Home Sales data, and it will be interesting to see how this figure fares since it has been on a steady decline for some time now.\u00a0 If New Home Sales should outperform, this could benefit the Dollar due to speculation that the Fed could raise sooner than anticipated.<\/p>\n

Technically speaking, the EUR\/USD clearly faces a multitude of downtrend lines due to the extent of today\u2019s pullback.\u00a0 Since uptrend lines are sitting far below, the EUR\/USD\u2019s objective now becomes to set a new base, which could take a little while barring a positive reaction to this week\u2019s EU summit.\u00a0 The EUR\/USD now has March and April 2009 levels serving as supports\/resistances.<\/p>\n

Present Price: 1.3344
\nResistances: 1.3372, 1.3391, 1.3410, 1.3447, 1.3473
\nSupports:\u00a0 1.3340, 1.3320, 1.3300, 1.3284, 1.3268, 1.3245
\nPsychological: March lows, 1.33<\/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 regarded neither 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 has plunged beneath previous March highs in reaction to IMF involvement in Greece\u2019s financial assistance becoming more likely.\u00a0 France is beginning to turn Germany\u2019s way, favoring IMF involvement on a certain level, and not until Greece is unable to attain financing on its own two legs.\u00a0 Investors reacted negatively … <\/p>\n

Continue reading “EUR\/USD Plunges as Portugal Enters Fray”<\/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-7926","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7926","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=7926"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/7926\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=7926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=7926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=7926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}