Dollar vs Euro Chart 21 Oct 2009

Dollar vs Euro Chart 21 Oct 2009

Having confidently predicted that the euro vs dollar would break 1.50 sometime yesterday we were instead treated to yet a further day of dithering and indecision.  Fortunately for me the 1.50 break happened earlier today as we now wait for the pair to tackle the next technical target of 1.55.  Yesterday’s candle was very similar to those of the last few days, with a move lower being snuffed out later in the trading session as the bulls bought into the falling market once again, and as with the previous candle, the low of the day finding good support from the 9 day moving average, a positive signal that we should see the break higher in due course.  With all three moving average now pointing sharply higher and with strong support below there is nothing on the euro vs dollar chart to suggest that the bullish trend of the last few weeks is coming to an end just yet.

With no fundamental news on the economic calendar for Europe the focus is entirely on the US where we have had the crude oil numbers which confirmed the stockpile increasing by 1.3m barrels.  Later we have speeches from two FOMC members:  Jeffrey Lacker who is due to speak at a journalist workshop on the topic “Economics Made Easy”  – indeed!!  This is followed by Daniel Tarrullo who is speaking at the Exchequer Club in Washington DC where audience questions are expected.  Finally the Beige Book which is released 8 times a year and two weeks before each FOMC meeting.  The analysis in the Beige Book is used by the FOMC to help make their decision on interest rates.  However, its effect is somewhat muted as the FOMC also considers two other books: the Green Book and the Blue Book which are believed to be more influential to their interest rate decisions.   You can, of course, 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.