Euro vs Dollar Chart 23 Nov 2009

Euro vs Dollar Chart 23 Nov 2009

The euro dollar continued to move sideways once again yesterday, ending the trading session as a wide spread up candle, but which failed to break out of the current price congestion, and simply added further to the strong pennant pattern now being formed at this level on the daily chart. With the 40 day moving average providing solid support at present this would suggest that any breakout will be to the upside, but this is far from certain. All we can say at present is that the longer this price action continues, then the more explosive will be the break when it occurs. With all three moving averages now bunching tightly around the 1.49 price point, this area is now the focus for the current sideways trend, with 1.505 remaining the key level for a break higher, and 1.47 for a break to the downside.  However, as always we now need to wait for one of these technical price levels to be broken which will then set the trend for the euro dollar in the medium term.

So far this morning items of fundamental news likely to move this pair have included German Ifo which came in better than expected at 93.90 and Europe Industrial New Orders which too came in better than expected at 1.5% and which have proved supportive for the Euro.  However, amongst the various releases for the US the markets will be focusing on preliminary GDP figures which are forecast at 2.9% and the CB Consumer Confidence numbers in a holiday shortened week which is already proving to be highly volatile, unpredictable but potentially highly profitable.

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Support & Resistance for the Euro Dollar :

S1:  1.4882   R1:  1.5014

S2:  1.4808   R2:  1.5072

S3:  1.4750   R3:  1.5146