Euro Dollar - Currency Trading Daily Chart 30th April 2009

Yesterday’s price action was far from convincing, and despite ending the session with an up bar the deep upper shadow was suggesting of inherent weakness in the bullish move, and it is interesting to note that the close of the day finished on the downward sloping trendline, perhaps indicating that the move had run out of steam.  Indeed in this morning’s early trading we are seeing this type of price action once again with an attempt to move high promptly being squashed by the bears and should the current candle remain intact as at present then we could be left with a shooting star signalling weakness in the move and a possible reversal in due course trending lower in the channel.   The key for the short term will be whether prices hold at the 1.33 level or below and if this is the case then we should see weakness in due course.

This afternoon sees a plethora of fundamental news on the economic calendar all of which I have covered in more detail on the eurodollar fundamental news site and if yesterday is anything to go by it is going to become increasingly difficult to predict likely currency market movements based on any fundamental data as yesterday’s dreadful US GDP figures resulted in strong risk appetite and consequent rise in the equity market.  A conundrum if ever there was one. With all three moving averages now converging, my trading suggestion for today is to look for swing trading opportunities in the 15 and 30 minute charts, looking to take small profits and using tight stop losses.

In the meantime you can keep up to date with all the latest fundamental news, latest currency news and live currency charts by simply following the appropriate links.  In addition I have provided information on an excellent ECN broker.