Euro Dollar - Daily Candle Chart 3rd February 2009

Euro Dollar - Daily Candle Chart 3rd February 2009

Mm, an interesting day yesterday on the daily candle chart for the euro vs dollar pair, which is difficult to interpret, for two reasons. Firstly, the market opened gapped down in the morning, which is generally a signal that prices will tend to move in the direction of the gap, which in this case was down. Secondly the resultant candle was an up doji, but with prices closing at the previous close of Friday. The moving averages have all remained intact so the trend is still bearish, but we are moving into a very congested area where anything might happen in the short term, and until this region is breached significantly, or this becomes a support area for re-basing of the pair, then I would suggest you step aside from the market for today on an intra day basis, and wait for a stronger signal to provide us with some short term direction ( other then sideways!)

As I have said many times before, patience is a virtue and you do not need to trade every day – the market is always there, we just have to be patient and wait for a signal that provides us with a better chance of forecasting the short term direction, rather then simply trading on gut instinct or a guess. I am not trading this euro vs dollar pair today for the above reasons. If you would like an update on the fundamental news out later for the euro dollar, please just follow the link.