Euro vs USD 1 March 2010
The euro vs dollar continues to trade in a relatively narrow range as it attempts to find some traction in the USD1.3450 to USD1.3550 price region and in the last two weeks the lower level of this price band is now building a platform of support. Friday’s narrow spread up candle failed to break above the 14 day moving average which restricted any further upwards momentum, and this was confirmed in today’s trading with a move lower in the London session. However, the continued failure to break the USD1.35 price region suggests that we could see a short term reversal higher with a possible re-test of resistance in the USD1.3850 which would then run into the 40 day moving average as a result.
Euro vs Dollar Weekly Chart 1 March 2010
The weekly chart tends to echo this analysis with last week’s doji candle adding to the 2 long legged doji cross signals of the previous 2 weeks, all of which suggests that we have reached a turning point in this pair, so expect to see a reversal higher in due course. Whilst the longer term outlook remains bearish short term we can expect a move to the upside.
All the fundamental news for the euro vs dollar is covered on my blog.
