EUR/USD Pops Past September Highs

New York London GMT Tokyo Singapore

EUR/USD Pops Past September Highs

By FastBrokers on October 13, 2009 | More Posts By FastBrokers | Author's Website

The EUR/USD has broken through our 3^rd tier downtrend line and consequently September highs. Though the currency pair is trading off of intraday highs, today’s move will likely prove to be an important step for the beginning of a new leg up. Our 3^rd tier is the final foreseeable downtrend line for the near future. Therefore, barring a large immediate reversal, the EUR/USD may have finally broken loose of its top-end constraints. Today’s positive movement comes despite weaker than expected ZEW Consumer Sentiment data. The ZEW numbers are a noticeable setback concerning the future of the economic recovery. Today’s data reflects the spotted cool down appearing in econ releases around the globe. The EUR/USD’s strength in light of today’s news contradicts rationality and reinforces the inherently negative investor sentiment surrounding the U.S. Dollar.

Despite today’s topside progress the EUR/USD still has a bit of a rough patch to deal with between present price and the highly psychological 1.50 level before immediate-term gains can truly accelerate. Meanwhile, the EUR/USD’s near-term fate likely rests upon the shoulders of 3^rd quarter earnings results and important U.S. econ data over the next two days, including Retail Sales and Core CPI. If U.S. earnings and econ data both top expectations then the EUR/USD may receive the boost it needs to top 1.50. On the other hand, any significant setbacks could undermine today’s progress and cap near-term gains.

As we mentioned previously, the EUR/USD’s pop past our 3^rd tier downtrend line and September highs sends a bullish signal. Although 1.50 wouldn’t be a cakewalk, recent breakouts in gold and the Aussie leave the Euro with quite a bit of room to make up. As for the downside, the EUR/USD has plenty of cushions, beginning with our fresh 1^st tier uptrend line and ending with our 4^th tier uptrend line and weekly lows (10/13, 10/12, 10/7, 10/5). As for the topside, the EUR/USD faces technical barriers in the form of 8/21/08 and 8/13/08 highs along with the psychological 1.50 level. The EU will release Industrial Production tomorrow, yet the EUR/USD’s upcoming movements will likely depend on the performance of the U.S.

Present Price: 1.4858

Resistances: 1.4881, 1.4905, 1.4946, 1.4981, 1.5013, 1.5052

Supports: 1.4842, 1.4823, 1.4794, 1.4769, 1.4743, 1.4719

Psychological: September Highs, 1.50

Check Out These Related Posts:

If you like this article please...

Subscribe by RSS Subscribe by Email

Email This Post To A Friend

Recent News:

Stocks Remain Mostly Negative In Early Afternoon Trading - U.S. Commentary - 29 mins ago
Stocks Seeing Continued Weakness In Late Morning Trading - U.S. Commentary - 1 hr ago
Consumer Confidence Shows Unexpected Improvement In November - 2 hrs ago
Stocks Moving Moderately Lower Following Economic Reports - U.S. Commentary - 2 hrs ago
Annual Rate Of Decline In Home Prices Shows Continued Slowdown In September - 2 hrs ago

Opinions From Our Contributors

Commodities Will Copper Continue To Shine In ‘09? When Do We Sell Gold? Silver ETFs: More Gains To Come? Oil Seems Like It’s Going Nowhere… But The Story Is Very Different Below The Surface Distorted IEA Oil Reserve Figures Create Biofuel Opportunities In “White Gold” Region Of Central Asia The Simplest Reason Gold Will Soar Physical Gold, Silver And Oil Out-Performing Their Stocks? Silver Hits New Highs At Top Of Uptrend Channel Gold Has Just Barely Entered The Gravity-Free Zone More Than Just Mines: A Look At Other Ways To Profit From Coal, Copper And Ore Read More »	Financials Stock Market News: HP, Analog Devices, Heinz, Medtronic Report Strong Results, Citigroup Selling Diners Club To Bank Of Montreal Stock Market Briefs: Twitter May Consider IPO, Tyson Foods Beats Estimates Don’t Count Out Actively Managed ETFs U.S. Bank Failures Reach 124 Financial ETFs Still Remain Vulnerable Ron Paul Thinks That Fed “Oversight Is Laughable” Buffett Borrows For Rail Acquisition Investment Ideas: Here Are 3 Dirt Cheap Stocks Treasury To Auction TARP Warrants Dear Reader, We Cannot Criticize Goldman Sachs. Instead, We Admire It Read More »	Exchange Traded Funds Why Agriculture ETF Outlook Appears Promising Is Low Interest Creating A Sovereign Debt Bubble? Protect Yourself Against An Imminent Stock Market Correction Japan ETFs: The New War They’re Waging India ETFs: Too Much, Too Soon? ETF Update: Health Stocks And Health Care Legislation Biggest Gainer ETFs For The Week Ended 22 Nov Has Gold Just Broken Out Of Its Trend Channel? What You Should Know About Precious Metals ETFs And Taxes Main Street Vs. Wall Street: Using ETFs To Capitalize Read More »
Stocks Will Emerging-Market Outperformance Last? Stock Market Movers: Dollar Tree, Origin Agritech, US Airways Group How To Value Stocks Using Discounted Cash Flow Stocks To Watch Tuesday: Curis, Cell Therapeutics, Qwest Indian Stock Markets: Sensex Down 49.10 On Tuesday Can The Retail Sector Rouse The Recovery? Stock Charts For Tuesday: S&P 500, Nano, Hertz A Different Look At Recent Breadth Divergences In The NYSE Insider Selling Can Be An Important Tool In Determining Potential Trouble For Both Individual Stocks And The Broader Market Stock Picks For Tuesday: Curis, THQ And DryShips Read More »	Forex Risk Aversion Takes A Back Seat In Forex Markets Australian Dollar: Caution Swiss Franc: The Downside Prevails Canadian Dollar: Caution Japanese Yen: Under Pressure British Pound: The Downside Prevails Euro: Under Pressure Watching EUR/USD At The 1.4945 Level Where 100 & 200 Bar Moving Averages Converge Forex Markets Drift Due To Lack Of Drivers Tuesday’s Forex Outlook Read More »	Economy Consumer Attitudes: The Future Of Saving And Spending Economic Highlights: GDP Up 2.8%, Corporate Profits Increase By $130 Billion With T-Bill Yields At Zero, It’s Time To Beware Of The “Bond Bears” U.S. Economy Will Grow Faster Than Expected, Jobs To Return To Growth Next Year, Economists Say Government Debt - The New Subprime? Heeding The Populist Call Here’s A Sector To Short Cartoon: This Unemployment Line Seems Different 29 Retailers You’ll Have A Harder Time Finding After 2009 Emerging Markets Consider Capital Controls To Combat “Hot Money” Inflows Read More »