{"id":9773,"date":"2010-05-27T11:06:30","date_gmt":"2010-05-27T15:06:30","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=9773"},"modified":"2010-05-27T11:06:30","modified_gmt":"2010-05-27T15:06:30","slug":"eurusd-volatile-as-safe-rumors-weigh","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/05\/27\/eurusd-volatile-as-safe-rumors-weigh\/","title":{"rendered":"EUR\/USD Volatile as SAFE Rumors Weigh"},"content":{"rendered":"

By Fast Brokers <\/strong>– The EUR\/USD tumbled back towards previous May lows yesterday after rumors circulated that China\u2019s SAFE is reevaluating its reserve exposure to the Euro.\u00a0 However, the EUR\/USD shot back up today after a government official dismissed the rumors as ridiculous.\u00a0 Regardless, the volatility in the Euro over the past 24 hours shows the influence decisions in China can have over FX markets.\u00a0 Meanwhile, Geithener is visiting Germany and encouraging the EU to have a more unified stance in dealing with the fiscal problems.\u00a0 If Geithener can manage to provide an image of solidarity among Western nations this could help hold the EUR\/USD above May lows.\u00a0 Speaking of fiscal issues, Spain and Italy are in the process of piecing together their respective austerity measures as nations across the EU try to trim their budgets to give investors more confidence in their bonds.\u00a0 Though this should prove to be a wise decision for the Euro\u2019s long-term outlook, the cuts could dampen medium-term growth and this is why the currency is dragging.\u00a0 Meanwhile, investors are waiting on U.S. prelim GDP.\u00a0 We received another solid set of U.S. data yesterday, leading investors back towards the dollar amid heightened uncertainty in the EU.\u00a0 It\u2019s becoming more apparent that the Fed will need to tighten before the ECB, and this is also weighing down the EUR\/USD.\u00a0 As usual, investors should could a sharp eye on the news wires since there is a high probability of more action in the EU as governmental leaders try to squash speculation.\u00a0 Regardless, the EUR\/USD is still under considerable downward pressure and the story remains whether the currency pair can hold these previous May lows.\u00a0 If not, then we may see a test of 1.20 over the near-term.\u00a0 The EU will be quiet on the data front tomorrow, leaving U.S. data and psychological forces in the driver\u2019s seat.<\/p>\n

Technically speaking, the EUR\/USD faces multiple downtrend lines along with intraday and 5\/24 highs.\u00a0 Additionally, the psychological 1.24 and 1.25 areas are now serving as technical barriers.\u00a0 As for the downside, the EUR\/USD has supports in the form of intraday and 5\/19 lows.\u00a0 Furthermore, the psychological 1.20 could serve as a solid cushion should it be tested.<\/p>\n

Present Price: 1.2258
\nResistances: 1.2268, 1.2280, 1.2304, 1.2318, 1.2341, 1.2369
\nSupports:\u00a0\u00a0 1.2234, 1.2208, 1.2191, 1.2167, 1.2146, 1.2120
\nPsychological: May 2010 lows, March 2006 lows, 1.24, 1.25, 1.20<\/p>\n

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(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 tumbled back towards previous May lows yesterday after rumors circulated that China\u2019s SAFE is reevaluating its reserve exposure to the Euro.\u00a0 However, the EUR\/USD shot back up today after a government official dismissed the rumors as ridiculous.\u00a0 Regardless, the volatility in the Euro over the past 24 hours shows … <\/p>\n

Continue reading “EUR\/USD Volatile as SAFE Rumors Weigh”<\/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-9773","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9773","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=9773"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/9773\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=9773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=9773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=9773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}