Euro vs Dollar - 16th February 2009 Daily Candle Chart

Euro vs Dollar - 16th February 2009 Daily Candle Chart

As I suggested in yesterday’s post the spinning top was a signal that suggested a possible move back up, which is indeed what we saw in the morning session, a move which later reversed in the evening, leaving us with an up bar with a large wick on the top. What is particularly interesting is that the highest price on the day failed to penetrate the 9 day moving average and touched the resistance above before bouncing off, suggesting that the bearish tone is still in place, and we could expect a move lower today. With all three moving averages now trending lower, my suggestion for day trading today would be small short positions with tight stops above. If you would like to see the fundamental news for today, please just follow the link here to euro to dollar.   Good luck with your trading and investing today, and see you on Monday.

The short term outlook is bearish, with the medium to long term sideways.