Home » Euro vs Dollar Daily Chart » Euro versus Dollar Trend 25 Jan 2010

Euro versus Dollar Trend 25 Jan 2010

Thursday’s hammer candle on the euro vs dollar daily chart was duly confirmed on Friday with a minor recovery which is as we expected and as suggested in that day’s post. Technically the candle ended as a narrow spread up bar but with a deep wick to the upper body suggesting that any recovery is likely to be short lived and certainly initial signs are that this will probably frizzle out in due course. With the euro vs dollar now deep below the 200 day moving average as well as all other shorter term moving averages any recovery from this position will require a great deal of sustained effort.

In the absence of any fundamental news for today we are unlikely to see any major move in the eurodollar  but this could change mid week with the Fed Rate Decision due out on Wednesday. Details of the fundamental news items for the euro vs dollar can be found on the eurodollar site.  With the pair now deeply embedded in September’s price consolidation a break below the USD1.40 price point should signal a move to re-test the lower level at USD1.38 and a breakout here could signal a significantly deeper move possibly back towards USD1.30 or even lower.

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Support & Resistance for Eurodollar : (Daily Chart)

S1:   1.4086    R1:   1.4184

S2:  1.4036    R2:   1.4232

S3:  1.3988    R3:  1.4282