Euro vs Dollar Chart 23 Oct 2009

Euro vs Dollar Chart 23 Oct 2009

The euro vs dollar ended the trading week marginally above the 1.50 price level, a region it is finding increasingly difficult to breach, and with Friday’s spinning top candle, symptomatic of the last few days, with the currency pair edging ever higher but with no great conviction or certainty. However, despite this lack of momentum, the bullish sentiment for the pair remains firmly in place, with excellent support for the move coming from all three moving averages which continue to provide a platform for the bull trend with the next target being the deep resistance now lying ahead in the 1.54 price region. The weekly chart for the euro vs dollar also confirms this technical picture, with little now in the way of a move higher on the chart, and in the medium term we should therefore see the pair reach 1.53 before the end of the year, with  chronic dollar weakness helping the pair on their journey North.

With no meanginful items of fundamental news on the economic calendar today (other than the German Gfk Consumer Climate number which came in marginally below expectation at 4.0 and nothing for the US) expect markets to drift and react to news items such as that China is threatening to diversify away from the US dollar (shock & horror!!) which did cause some minor ripples earlier today.  It should be remembered that China’s rhetoric about the US dollar does mask its own agenda – and that for the time being it suits Beijing to see a weak dollar while it tries to rebuild its own exports.  Nevertheless 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.