euro vs dollar currency chart

EUR/USD – daily chart

The EUR/USD continued is recent bullish tone on Friday, closing the trading session at 1.2572 ahead of the three day weekend, with the US markets closed Monday for the Labor day holiday. The move higher on Friday was largely as a result of the statement from Fed Chairman Ben Bernanke, as once his strong hints suggested that the Federal Reserve is ‘ready to pull the trigger’ with a further round of quantitative easing in an effort to stimulate demand in the US economy. The markets had been hoping for some clearer statement as to the likely start date for the next round of US dollar printing. What is clear however, that this is certainly on the way, and as such we should see the US dollar weaken over the next few months, with commodities rising, along with the major currency pairs such as the euro vs dollar.

On the daily chart we can see that the recent bullish trend has yet to be reflected on a three day chart, where the trend remains white and still in congestion. However, over the last 2 weeks, the move higher has been supported with buying volume, and with our Hawkeye heatmap also now bright green, this is adding to the bullish sentiment for the currency pair. In addition, Thursday’s minor pullback for the pair, also delivered an isolated pivot low on the chart, which should see the EUR/USD move higher over the next few days as a result. To the upside the key level of price resistance is now in the 1.2742 region, and if this level is breached, then we can expect to see the pair move firmly higher in due course, and possibly re-test the 1.3000 region in the longer term. This bullish momentum was signaled by Hawkeye once again, which delivered an aggressive volume entry signal on the 21st August as the pair broke above key resistance in the 1.2400 region.

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