Euro vs Dollar Chart 13 Nov 2009

Euro vs Dollar Chart 13 Nov 2009

The euro  dollar closed the week in positive mood again, having recovered from the sharp sell off in the middle of the week, ending Friday’s trading session with a narrow spread up candle, which broke and held above all three moving averages once again. Indeed the key indicator on the daily chart for the euro dollar moving forward is the 40 day moving average, which as we can see from the trend since August has provided the necessary support during each temporary reversal lower in the upwards trend, and this was the case again last week, with the moving average providing a platform on both Wednesday and Thursday to the low of each day. As a result we can assume from the current technical picture that the currency pair are set to continue higher in the medium term, and the only barrier in the short term remains the 1.5050 price level which has proved to be an obstinate ostacle for the pair. If this price level is breached, and it seems that we will have another run at it today, then we can safely assume that our intial target of 1.52 followed by the 1.55 price level will be achieved in due course as a result.  With all three moving averages now providing solid support the outlook remains bullish for the euro dollar pair.

Potential market moving fundamental items on today’s economic calendar are in the US where both Retail and Core Retail Sales are expected along with a speech from Fed Chairman Ben Bernanke who is due to speak in New York at 18.15 GMT on the outlook for the economy.  Traders will be paying close attention to his words as audience questions are expected which can cause a degree of market volatility.  In addition with the President and most of the Administration in China where Treasury Secretary Geithner continues to declare his belief in a “strong dollar” the forex market may express its scepticism by simply pushing the Euro higher.

Support & Resistance for Euro Dollar:

S1:  1.4838    R1:  1.4951

S2:  1.4774   R2:  1.5000

S3:  1.4725   R3:  1.5064

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