Euro vs Dollar Chart 5 Nov 2009
A day of indecision and uncertainty yesterday for the euro vs dollar which ended the currency trading session with a long legged doji and only marginally higher on the day, failing to follow through on Wednesday’s strong move higher following the FOMC meeting and rate decision in the US. Yesterday, the spotlight was on Europe with the ECB decision, but neither the decision nor the following statement failed to excite the markets resulting in a day where prices osciallated between the 1.4950 and 1.4800 price levels. From a technical perspective yesterday’s close found some support from the 14 day moving average which suggests that we may see the upwards momentum continue in due course, but with potential resistance ahead, we need to see a break and hold above the 1.5050 price handle in the short term for this to be confirmed. Given the recent upwards trend, this would seem to be the more likley direction for the euro vs dollar in the short term, and the Non Farm Payroll data may provide a boost to the euro later should the US dollar decline further as a result.
The most important items of fundamental news on the economic calendar for the euro vs dollar today are, of course, the NFP data and unemployment rate which will, no doubt, produce the usual pyrotechnics with the first knee jerk reaction rapidly being replaced by a more sober assessment of the numbers. However, this month markets will be watching not only the actual numbers but also the unemployment rate which although still under 10% – any significant rise could spook the markets more than intended. 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.
R1: 1.4925 S1: 1.4819
R2: 1.4974 S2: 1.4762
R3: 1.5031 S3: 1.4713
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