Euro vs Dollar - EUR/USD Currency Rates 25th June 2009

Euro vs Dollar - EUR/USD Currency Rates 25th June 2009

Yesterday’s candle on the euro vs dollar chart which closed the session as a wide spread down bar reversed much of the gain of the previous day suggesting that we may now be entering a period of sideways consolidation with a mildly bearish tone.   The fall yesterday was largely triggered by the FOMC statement which resulted in a degree of Dollar strength following the news, which in general was relatively anodyne in any comments relating to changes in policy or interest rate expectations.  The only item which could be considered as interesting were the comments relating to the bond market and suggestions that the FED would not be increasing its bond buying programme at present.  In addition the word deflation was avoided and in general a bit of damp squib and certainly not the catalyst that many had been expecting.  Technically the low of yesterday closed marginally below the 14 day moving average but seemed to find a modicum of support at the 9 day moving average, but with all three now bunching, and the head and shoulders having been extinguished we may now be looking at the early stages of a pennant pattern at this price level. With very little fundamental news on the economic calendar for today, other than the unemployment numbers in the US later today, I do not expect to see much price action in this pair and the pair will remain firmly range bound until, perhaps, the Non Farm Payroll figures next week.

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