Euro vs Dollar - Weekly Candle Chart 16th February 2009

Euro vs Dollar - Weekly Candle Chart 16th February 2009

The weekly chart provides little in the way of clues for this week’s trading I’m afraid, and really tells us what we already know, in that the euro vs dollar pair is currently trading sideways, and until we see some volatility in the currency pair, then my suggestion is to stay out until further notice. The weekly prices are all trading below the moving averages, suggesting that when prices do break, they will move to the downside, but my concern is that with such strong support now being built in the 1.2550 – 1.270 region, this could result in a rebound higher as the pair build a base in this area. As you can see on the daily chart we have a strong triangle pattern, with a flat base and lower highers on each day, and whilst a study of the number of bearish or bullish signals is inconclusive, my feeling is that we are looking for breakout to the downside at the moment.

The short term outlook is sideways, the medium to long term is bearish.