By Fast Brokers – The EUR/USD has stabilized above Thursday lows after the EU released an Industrial New Orders figure a full percentage point above analyst expectations. A positive data release has allowed the Euro to finally create some sort of bottom after this week’s huge pullback. The Euro’s relative strength today is highlighted by a solid pop in the EUR/GBP. However, the S&P futures made a key step back yesterday and gold has dropped below its highly psychological $1100/oz level, both negative developments for the EUR/USD due to correlative forces. That being said, investors should keep a sharp eye on the S&P futures around 1100 and monitor gold’s ability to stabilize above December ’09 lows should they be tested. If these two psychological cushions don’t hold the Dollar could be in for a more extensive leg up over the medium-term. Volatility could remain at a heightened state next week with the EU kicking off by releasing its GfK Consumer Climate data followed by U.S. Existing Home Sales. Additionally, we’ll receive heavily weighted data from around the globe over the week including monetary policy decisions from Japan and the U.S.
Technically speaking, the EUR/USD understandably faces multiple downtrend lines considering the extent of its decline. However, our downtrend lines have quite a bit of space between them, meaning the Euro could gain back some ground should the Dollar experience broad-based weakness. As for the downside, the EUR/USD has a new 1st tier uptrend line running through Thursday lows acting as a support. Additionally, the EUR/USD does have the psychological 1.40 level serving as a technical cushion.
Present Price: 1.4130
Resistances: 1.4117, 1.4146, 1.4165, 1.4191, 1.4224, 1.4247, 1.4291
Supports: 1.4080, 1.4065, 1.4045, 1.4015, 1.3981, 1.3950
Psychological: 1.40
Market Commentary provided by Fast Brokers.
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