{"id":9423,"date":"2010-05-14T15:23:45","date_gmt":"2010-05-14T19:23:45","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9423"},"modified":"2010-05-14T15:23:45","modified_gmt":"2010-05-14T19:23:45","slug":"eurusd-sinks-below-1-625","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/14\/eurusd-sinks-below-1-625\/","title":{"rendered":"EUR\/USD Sinks Below 1.625"},"content":{"rendered":"

By Fast Brokers<\/strong> – The Sell off in the EUR\/USD is proceeding at a persistent, yet accelerated pace as it makes 100 basis points look like a standard movement.\u00a0 Rhetoric concerning the viability of the EU is heating up with prominent figureheads making their thoughts known, including Volcker, Bernanke, and King.\u00a0 The vocal hesitancy from well-respected economists and central bankers has investors second guessing the effectiveness of last weekend\u2019s $1 trillion EU rescue package.\u00a0 Hence, the selloff is the EUR\/USD is gaining steam, dropping below 5\/6 lows and its highly psychological 1.25 level.\u00a0 Portugal joined Spain in announcing the implementation of austerity measures to reign in budget deficits.\u00a0 Although this could prove to be good news concerning the long-term health of the EU, analysts and investors fear that austerity measures could hamper economic growth to an effect that contradicts the very purpose of the $1 trillion package.\u00a0 Hence, the legitimacy of the EU has been thrown into question and the Euro is suffering as a result.\u00a0 Most disconcertingly, the $1 trillion price tag doesn\u2019t seem to be having its designed purpose, which is ridding the market of speculators.\u00a0 The EU didn\u2019t release any pertinent economic data today, allow psychological forces to control today\u2019s price action.\u00a0 Not that this would matter since the EUR\/USD has shrugged off this week\u2019s encouraging EU prelim GDP figures.\u00a0 Meanwhile, investors are waiting on U.S. prelim UoM consumer sentiment data.\u00a0 Retail sales and industrial production printed a little bit above expectations, though the numbers aren\u2019t anything to get overly excited about.\u00a0 The story of the EUR\/USD remains the fiscal problems in the EU and finance ministers are hoping a weekend break will cool down speculation.<\/p>\n

Technically speaking, the EUR\/USD clearly faces an uphill battle with a wealth of downtrend lines hanging over head.\u00a0 Additionally, the EUR\/USD faces technical barriers in the form of intraday, 5\/12, and 5\/13 highs along with the psychological 1.25 level.\u00a0 As for the downside, the EUR\/USD has a limited near-term support system in the form of October 2008 lows and its psychological 1.23 area.<\/p>\n

Present Price: 1.2457
\nResistances: 1.2480, 1.2521, 1.2544, 1.2581, 1.2622, 1.2652
\nSupports:\u00a0\u00a0 1.2456, 1.2432, 1.2405, 1.2372, 1.2329
\nPsychological: May 2010 lows, March 2009 lows, October 2008 lows,1.26, 1.25, 1.24, 1.24<\/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 Sell off in the EUR\/USD is proceeding at a persistent, yet accelerated pace as it makes 100 basis points look like a standard movement.\u00a0 Rhetoric concerning the viability of the EU is heating up with prominent figureheads making their thoughts known, including Volcker, Bernanke, and King.\u00a0 The vocal hesitancy from … <\/p>\n

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