{"id":9265,"date":"2010-05-10T12:27:07","date_gmt":"2010-05-10T16:27:07","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9265"},"modified":"2010-05-10T12:27:07","modified_gmt":"2010-05-10T16:27:07","slug":"eurusd-pops-and-drops-on-eu-bailout-package","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/10\/eurusd-pops-and-drops-on-eu-bailout-package\/","title":{"rendered":"EUR\/USD Pops and Drops on EU Bailout Package"},"content":{"rendered":"

By Fast Brokers <\/strong>– The EU and IMF put together a nearly $1 trillion bailout package for struggling member countries and the ECB followed with an announcement it will purchase government bonds when deemed necessary.\u00a0 Hence, the EU brought a full-scale assault against speculators in an effort to counter last week\u2019s collapse with an equally powerful stimulant.\u00a0 The EUR\/USD responded well during the Asia trading session by surging back above 1.30.\u00a0 However, the currency pair is drifting back towards session lows as the euphoria wears off.\u00a0 Hence, although the rally from Thursday lows has been impressive, it\u2019s possible the shock and awe campaign may have not been enough to jolt the EUR\/USD out of its downturn.\u00a0 That being said, it will be important to see the EUR\/USD stage another follow through rally over the next few days in order to establish a new uptrend.\u00a0 Even though the Euro isn\u2019t responding quite as well as EU policy makers may have hoped, the European markets experienced an incredible rally, so it seems the bailout package may favor EU equities over the Euro currency.\u00a0 However, we\u2019ll have to see how the week pans out first.\u00a0 An important gauge to watch may be German bond prices.\u00a0 If German bond yields climb higher this could weigh on the EUR\/USD.\u00a0 The EU won\u2019t release much noteworthy data until Wednesday\u2019s German prelim GDP and EU Flash GDP figures, meaning the next 24 hours should be about the outlook regarding the effectiveness of the $1 trillion bailout.\u00a0 Additionally, China will release a solid data set tomorrow, including CPI and industrial production.<\/p>\n

Technically speaking, the EUR\/USD hasn\u2019t been able to hold 1.30, a disconcerting technical near-term development.\u00a0 However, the currency pair is still trading well above Thursday lows, meaning a bottom could form from present levels.\u00a0 As for the topside, the EUR\/USD faces a wealth of downtrend lines along with the psychological 1.30 level and intraday highs.<\/p>\n

Present Price: 1.2839
\nResistances: 1.2854, 1.2887, 1.2912, 1.2945, 1.2969, 1.2996
\nSupports:\u00a0\u00a0 1.2819, 1.2802, 1.2779, 1.2758, 1.2734, 1.2704
\nPsychological: May 2010 low, March 2009 lows, October 2008 lows, 1.28, 1.27, 1.26, 1.25<\/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 EU and IMF put together a nearly $1 trillion bailout package for struggling member countries and the ECB followed with an announcement it will purchase government bonds when deemed necessary.\u00a0 Hence, the EU brought a full-scale assault against speculators in an effort to counter last week\u2019s collapse with an equally … <\/p>\n

Continue reading “EUR\/USD Pops and Drops on EU Bailout Package”<\/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-9265","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9265","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=9265"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9265\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}