Euro vs Dollar Chart 9 Nov 2009

Euro vs Dollar Chart 9 Nov 2009

A strong technical perfomance for the euro vs dollar curerncy pair yesterday in the absence of any significant fundamental news, which ended the currency trading session with a wide spread up candle, which once again tested the 1.50 price handle and found good support for the upwards momentum from the 14 day moving average which provided the base for yesterday’s positive move upwards. The key price level ofcourse remains the 1.50 price point, and with a potential resistance area now building here, we need to see a clear break and hold above this region for the current bullish momentum to be maintained. Once this has occured then we should see a further move higher in the short term towards our initial target of 1.52 and then 1.55 in due course, with all three moving averages providing strong support.

There have been a number of fundamental news items on the economic calendar for Europe this morning, the most important being the German ZEW Economic Sentiment Index which was forecast to come in at 55.2 but which has actually come in at 51.1.  Released simultaneously was the Europe ZEW which also came in worse than expected at 51.8 against a forecast of 58 – both indices pointing to falls in investor confidence with a subsequent negative effect on the Euro.   Meanwhile in the US this afternoon we have a couple of speeches from FOMC members Lockhart & Tarullo as well as the IBD/TIPP Economic Optimisim index which is forecast to come in at 50.  You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.

S1:  1.4902     R1:  1.5064

S2:  1.4799     R2:  1.5123

S3:  1.4740     R3:  1.5226