Home » Euro vs Dollar Daily Chart » Euro Versus Dollar Trend – 14th December 2009

Euro Versus Dollar Trend – 14th December 2009

Euro vs Dollar Chart

The euro dollar currency pair closed the week with a bearish flavour clearly evidenced by Friday’s wide spread down bar which added further momentum to an already negative picture ending the week well below the floor of the recent congestion denoted by the USD1.47 price handle.  With this price point having been breached this has added a bearish layer to the daily chart and with all three moving averages now turning sharply lower, and with the 40 day crossing above both the 9 and 14, this is further compounding the negative sentiment towards the euro.  With little technical support now available between Friday’s close at USD1.46 and the next tier now awaits at USD1.44 and should this price level too be broken then a possible deeper move may be in prospect moving into the new year.  To the upside the USD1.5150 ceiling has now firmly established and for any recovery and resumption of the recent bullish trend this region will need to be breached with some considerable force, which seems unlikely at present.  Trading between now and the year end can be extremely volatile and erratic as traders and institutions square positions and markets experience very thin volumes which add their own particular brand of unpredictability.

There are no significant items of fundamental news for the euro dollar until Tuesday when the German ZEW sentiment is due for release which is forecast at 50.2 against a previous of 51.1, suggesting a decline in optimism, followed in the afternoon by the PPI data from the US.   Later in the week we have the weekly unemployment claims in the US followed by the Philly Fed Manufacturing Index and finally on Friday we have another sentiment indicator in Europe, this time the German Ifo Business Climate data.  All in all a relatively quiet week for fundamental news for the euro dollar.

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