{"id":9150,"date":"2010-05-05T12:12:52","date_gmt":"2010-05-05T16:12:52","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9150"},"modified":"2010-05-05T12:12:52","modified_gmt":"2010-05-05T16:12:52","slug":"eurusd-collapses-below-1-30","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/05\/eurusd-collapses-below-1-30\/","title":{"rendered":"EUR\/USD Collapses Below 1.30"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD has extended yesterday\u2019s selloff, collapsing below 1.30 as negative psychological forces strike the Euro.\u00a0 If there were alarm bells, they would be ringing right about now.\u00a0 A perfect combination of events has now given investors ample reason to dump the EUR\/USD after weathering headwinds from Greece for so long.\u00a0 Speaking of Greece, fresh austerity program protests have turned violent, casting the feasibility of implementing these measures in a pale light.\u00a0 Yesterday rumors circulated that Spain will need over 200 billion Euros to shore up its own finances.\u00a0 However, we stress that this news is purely speculative, yet significant damage has been done anyways.\u00a0 To make matters worse, Moody\u2019s announced today that it is reviewing Portugal for a possible downgrade.\u00a0 The triple whammy has ratcheted up conversations of contagion and the fact that all eyes are on the EU doesn\u2019t help matters much.\u00a0 In fact, the IMF president announced that the risk for contagion is considerable.\u00a0 So there you have it, a perfect storm of psychological forces have left the Euro at the mercy of fear.\u00a0 One needs to look no further than the EUR\/GBP to gain an understanding of the extent of the Euro\u2019s relative weakness at the moment.\u00a0 The fiscal crisis, if we may call it a crisis now, has finally bled into equity markets and the S&P futures look set to open today\u2019s session lower again.\u00a0 Meanwhile, the U.S. advance non-farm payrolls number finally turned positive, coming in a bit stronger than expected along with an upward revision for the previous release.\u00a0 This gives investors even more incentive to rush to the dollar amid uncertainty, placing further downward pressure on the EUR\/USD.\u00a0 The EU will light up the news wire again tomorrow with an ECB meeting on tap.\u00a0 Although it is highly unlikely that Trichet & Co. will tighten considering the circumstances, the ECB could try to calm the fire and allow the EUR\/USD to settle.\u00a0 The UK will also have its parliamentary election tomorrow, meaning the FX markets should be in for an active 24-48 hours.<\/p>\n

Technically speaking, the EUR\/USD is now trying to stabilize along its psychological 1.28 level with key March 2009 lows not so far away.\u00a0 Although the EUR\/USD gave up on 1.30 very quickly, if politicians can manage to calm the markets then the currency pair may be inclined to hover back towards 1.30 over the near-term due to its psychological significance.\u00a0 As for the topside, the EUR\/USD faces a marathon of downtrend lines along with intraday highs and the psychological 1.29 and 1.30 levels.<\/p>\n

Present Price: 1.2835
\nResistances: 1.2873, 1.2914, 1.2941, 1.2965, 1.2995, 1.3019
\nSupports:\u00a0\u00a0 1.2819, 1.2803, 1.2779, 1.2755, 1.2728, 1.2701
\nPsychological: March 2009 lows, 1.27, 1.28, 1.29, 1.30<\/p>\n

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

(click chart to enlarge)<\/p>\n

Market Commentary<\/em> provided by Fast Brokers.<\/a><\/strong><\/span><\/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 extended yesterday\u2019s selloff, collapsing below 1.30 as negative psychological forces strike the Euro.\u00a0 If there were alarm bells, they would be ringing right about now.\u00a0 A perfect combination of events has now given investors ample reason to dump the EUR\/USD after weathering headwinds from Greece for so long.\u00a0 … <\/p>\n

Continue reading “EUR\/USD Collapses Below 1.30”<\/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-9150","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9150","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=9150"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9150\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}