Euro vs USD - Daily Candle Chart 8th April 2009

Euro vs USD - Daily Candle Chart 8th April 2009

Following the bearish engulfing signal of Monday Tuesday’s decline in the euro vs dollar came as no great surprise and despite an attempt to move higher in the early session, closed the day lower and below both the 9 and 14 day moving averages which have now crossed adding weight to the bearish sentiment.   The interesting point to note is that the low of yesterday failed to penetrate the minor support level at 1.3255 and indeed in this morning’s session we are once again seeing a bounce higher from this support region and that immediately below it suggesting that the strength of the down move may be somewhat muted.  This is curious given the reversal in the fortunes of the Dow over the last few days which has not converted into dollar strength against the euro as one would expect.  This could be due to several factors but I suspect that the primary one is the lack of order flow because of the upcoming holidays, and we could well see this effect kick in early next week once the earning season gets under in the US stock market.

All the fundamental news on the economic calendar relating to the euro vs dollar is covered on the eurodollar site and my suggestion for trading today is as of yesterday, ie to look for short term trading opportunities intra day on the shorter time frame charts and based on the technical picture I would suggest looking for small shorts with tight stops.  Indeed as I write there is a shooting star candle on the 5 minute chart which could well provide some pips in the next period.

You can keep up to date with all the latest fundamental news, latest currency news and live currency charts by simply following the links, and if you are looking for a good ECN broker again just click the appropriate link.  Remember also that many markets are closed at the end of this week for various national holidays.