Euro Dollar - Daily Spot Chart EUR/USD 13th May 2009

Euro Dollar - Daily Spot Chart EUR/USD 13th May 2009

Yesterday’s wide spread up bar in the euro dollar added further momentum to the bullish trend with all three moving averages now providing solid support.   The only issue of concern is whether we may see a temporary pullback at the current price point of 1.3680 given the area of resistance created in mid April and which caused the pair to stall and then fall back quite significantly, so we need to view the next few day’s price action with a measure of caution.  With the dollar index confirming further weakness in the US dollar there is no reason to suppose that we will not see a break higher in the euro dollar in due course and if we break above the current level outlined above we should see a re-test of 1.3875 with a possible move above 1.40 in due course.   The weekly chart is also indicating a similar picture with last week’s wide spread up bar breaking out above both the 9 and 40 week moving averages, suggestive of a continued move higher now that we are clear of the congestion area of the last few weeks.  My trading suggestion is to look for buying opportunities on an intra day basis using the 15 minute and 30 minute charts, and building longer term trend positions should we see a break above 1.3750. All the fundamental news is covered on the eurodollar site.

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