{"id":8661,"date":"2010-04-19T14:04:01","date_gmt":"2010-04-19T18:04:01","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=8661"},"modified":"2010-04-19T14:04:01","modified_gmt":"2010-04-19T18:04:01","slug":"eurusd-dives-amidst-risk-aversion","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/04\/19\/eurusd-dives-amidst-risk-aversion\/","title":{"rendered":"EUR\/USD Dives Amidst Risk Aversion"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is continuing Friday\u2019s sell-off stemming from the SEC\u2019s action against Goldman.\u00a0 The UK and Germany are initiating investigations of their own, meaning these headlines could be clogging the headlines for quite a while.\u00a0 The SEC\u2019s investigation serves as a defense for financial legislation and is worrying investors that whatever bill is passed could be more constrictive than anticipated.\u00a0 Hence, we\u2019ve seen a pullback in the risk trade across the board in reaction, supported by investors rushing to the Yen.\u00a0 In addition to the Goldman news, China has taken its most aggressive action to prick its real estate bubble by forbidding banks from providing loans for 3rd home purchases.\u00a0 Therefore, the Chinese government is showing no signs of releasing its grip on the banking sector, particularly since housing prices increased by over 10% in March.\u00a0 Altogether, fear of regulation in the U.S. coupled with fear of an economic slowdown in China is leading investors towards the Dollar and the Yen.\u00a0 On a positive note, Citigroup earnings topped estimates and the risk trade is bouncing a bit right now in reaction to this news.\u00a0 Meanwhile, investors shouldn\u2019t forget about Greece even though the spotlight has shifted.\u00a0 If psychological conditions don\u2019t improve in either China or the U.S., another Greece debt scare could topple the EUR\/USD.\u00a0 However, this is all heresy and what we can say is that the EUR\/USD is still trading above some key March and April lows.\u00a0 Therefore, even though the risk trade has been pummeled the last two session, the EUR\/USD can still salvage its uptrend should psychological forces make an about face.\u00a0 The EU will release its ZEW Economic Sentiment data tomorrow and a positive showing could help turn the negative tide.\u00a0 Meanwhile, earnings will continue to flood in with tech bellweathers reporting throughout the week.\u00a0 As a result, this could prove to be a very active trading week.<\/p>\n

Technically speaking, the EUR\/USD has fresh uptrend lines serving as technical cushions along with intraday and 3\/31 lows.\u00a0 As for the topside, the psychological 1.35 now becomes a technical barrier along with an accumulation of downtrend lines and 4\/9 highs.<\/p>\n

Present Price: 1.3461
\nResistances: 1.3473, 1.3485, 1.3496, 1.3506, 1.3521, 1.3530
\nSupports:\u00a0 1.3455, 1.3442, 1.3431, 1.3423, 1.3416, 1.3401
\nPsychological: April highs and lows, 1.35, 1.34<\/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 is continuing Friday\u2019s sell-off stemming from the SEC\u2019s action against Goldman.\u00a0 The UK and Germany are initiating investigations of their own, meaning these headlines could be clogging the headlines for quite a while.\u00a0 The SEC\u2019s investigation serves as a defense for financial legislation and is worrying investors that whatever … <\/p>\n

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