EUR/USD
The EUR/USD continues to recover from Thursday’s lows after dipping below our bottom-end support and 3/30 lows. Despite jumping back above our 1st tier uptrend line, the EUR/USD seems to favoring the downtrend now. The EUR/USD ‘s relative weakness reflects investor uncertainty in the economy despite governmental efforts to confront the crisis with an air of confidence. The EU’s economic data is painting a mixed picture while Britain shows signs of recovery from all angles, hence the recent downturn in the EUR/GBP. Since the EU won’t be releasing any noteworthy data until Thursday, the EUR/USD should follow the S&P futures with a positive correlation. That being said, the EUR/USD is backing away from 4/09 highs and our 1st tier downtrend line. Therefore, today’s gains could prove to be futile if the currency pair can’t hold above our 1st tier uptrend line. Meanwhile, investors will keep a close eye on corporate earnings coming from America this week along with the results from the stress tests on financials at the end of the month. We maintain our negative outlook on the EUR/USD until the currency pair can make some fundamental progression to the upside. Fundamentally, we find resistances of 1.3323, 1.3351, 1.3375, 1.3413, and 1.3462. To the downside, we see supports of 1.3271, 1.3223, 1.3192, 1.3162, and 1.3126. The EUR/USD is currently exchanging at 1.3276.
The EUR/USD continues to recover from Thursday’s lows after dipping below our bottom-end support and 3/30 lows. Despite jumping back above our 1st tier uptrend line, the EUR/USD seems to favoring the downtrend now. The EUR/USD ‘s relative weakness reflects investor uncertainty in the economy despite governmental efforts to confront the crisis with an air of confidence. The EU’s economic data is painting a mixed picture while Britain shows signs of recovery from all angles, hence the recent downturn in the EUR/GBP. Since the EU won’t be releasing any noteworthy data until Thursday, the EUR/USD should follow the S&P futures with a positive correlation. That being said, the EUR/USD is backing away from 4/09 highs and our 1st tier downtrend line. Therefore, today’s gains could prove to be futile if the currency pair can’t hold above our 1st tier uptrend line. Meanwhile, investors will keep a close eye on corporate earnings coming from America this week along with the results from the stress tests on financials at the end of the month. We maintain our negative outlook on the EUR/USD until the currency pair can make some fundamental progression to the upside. Fundamentally, we find resistances of 1.3323, 1.3351, 1.3375, 1.3413, and 1.3462. To the downside, we see supports of 1.3271, 1.3223, 1.3192, 1.3162, and 1.3126. The EUR/USD is currently exchanging at 1.3276.
