{"id":9306,"date":"2010-05-11T12:32:16","date_gmt":"2010-05-11T16:32:16","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9306"},"modified":"2010-05-11T12:32:16","modified_gmt":"2010-05-11T16:32:16","slug":"eurusd-continues-slide-as-rescue-optimism-fades","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/11\/eurusd-continues-slide-as-rescue-optimism-fades\/","title":{"rendered":"EUR\/USD Continues Slide as Rescue Optimism Fades"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD has decline back towards its 1.27 level as optimism fades quickly in the wake of the EU\u2019s announcement of a $1 trillion rescue package.\u00a0 The functionality of the package has many unanswered questions (please refer to blogs.fastbrokers.com for further analysis), leaving the EUR\/USD in a vulnerable position technically as Thursday lows inch closer.\u00a0 Hence, the currency pair is by no way out of the woods at this point and investors should continue to watch EU bond yields as we mentioned in yesterday\u2019s commentary.\u00a0 Meanwhile, the risk trade as a whole is being dragged lower by the SCI officially entering a bear market.\u00a0 Chinese pricing data popped higher and the central bank issued a comment suggesting further tightening and Yuan appreciation could be around the corner.\u00a0 Hence, it\u2019s becoming clear that China may need to get more aggressive in terms of slowing down its economy, a negative for global equities and the risk trade since China has been an engine for the global economic recovery.\u00a0 Investors and analysts will continue to dissect the EU bailout package with most people unsure whether to interpret the action as a positive or negative development.\u00a0 Either way, the $1 trillion is massive and should have a long lasting impact on the FX markets.\u00a0 The EU will light up the data wire tomorrow by releasing prelim GDP data.\u00a0 Should fundamentals stay strong this could help buoy the EUR\/USD and keep it above Thursday lows.\u00a0 On the other hand, should prelim GDP disappoint this could result in immediate risk aversion.\u00a0 The BoE will release its inflation report tomorrow followed by U.S. trade data, meaning the FX markets should remain active tomorrow.<\/p>\n

Technically speaking, the EUR\/USD wasn\u2019t been able to hold 1.30, a disconcerting technical near-term development.\u00a0 However, the currency pair is still trading 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 1.28 and 1.29 levels.<\/p>\n

Present Price: 1.2730
\nResistances: 1.2734, 1.2758, 1.2779, 1.2807, 1.2819, 1.2854
\nSupports:\u00a0\u00a0 1.2704, 1.2671, 1.2652, 1.2622, 1.2603, 1.2581
\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 EUR\/USD has decline back towards its 1.27 level as optimism fades quickly in the wake of the EU\u2019s announcement of a $1 trillion rescue package.\u00a0 The functionality of the package has many unanswered questions (please refer to blogs.fastbrokers.com for further analysis), leaving the EUR\/USD in a vulnerable position technically as … <\/p>\n

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