Weekly Candle Chart EUR/USD - 23rd February 2009

Weekly Candle Chart EUR/USD - 23rd February 2009

Last week’s candle on the euro dollar pair, has formed a hammer, which suggests that for our longer term trading we could see a rise in prices, but as always we must wait to see if this signal is confirmed by next week’s candle. For those of you new to candlestick analysis, the candle is so called as it is referred to by the Japanese as ‘hammering out a bottom’. In other words this could be the first signal for us as traders that we are looking at a longer term reversal. Whilst prices are below all the moving averages it is too early to say whether this signal is valid, but it has provided an early warning, that perhaps the last few months of the downtrend are about to reverse. It is also interesting to note that the lowest price of the week reinforced the support level in the 1.2500 region once again. As always we cannot trade on one signal, but need to wait for a confirmation based on this weeks price action for our longer term trades, as we may simply be seeing a continuation of the sideways movement of the last few weeks. The fundamental news is covered for you in detail on the euro to dollar site, with very little in the way of news in the Eurozone for today or indeed in the US. If you would like to see a full economic calendar for this week then just follow the link.