Euro vs Dollar Chart 7 Dec 2009
The sharp sell off in the euro dollar on Friday failed to follow through into Monday’s trading session with the currency pair ending with a hammer candle and a deep lower wick, suggesting that any bearish sentiment has now been absorbed by the euro bulls, and as such we can expect to see a bounce higher in the pair in the short term in due course. However, whilst prices remain below all three moving averages, this will not be confirmed until we see a break and hold above all three once again, and any reversal may only be short lived as with considerable resistance now above, this may present a solid barrier to a move back higher to retest the 1.5150 price level once again. So in summary, in the short term we may see a move higher today as a result of the hammer candle of yesterday, but for the longer term we need to see the moving averages breached once again for a resumption of the longer term bullish trend to be reestablished.
With little news for Europe today, other than the French Govt Budget Balance & German Industrial Production, and some countries closed for a Bank Holiday price action could be desultory for this pair & it may be better to look at the Yen pairs which have provided some excellent trading opportunities. There is a similar lack of fundamental news in the US where there is only one scheduled for this afternoon: the IBD/TIPP Economic Optimism data – a diffusion index based on a survey of 900 consumers. The forecast figures if for 49.5, up a previous of 47.9.
What is one of the best retail forex trading platforms? In my view it is Metatrader 4. Advanced, powerful & intuitive it now comes with ECN execution, so you can happily scalp away without broker or dealer intervention. Just download your free demo copy of MT4 by following this link – download metatrader free - and get started today. Don’t forget to follow my daily posts for updates and analysis of the forex markets to help you with your forex trading – so good luck and good trading.
Support & Resistance for Euro Dollar :
S1: 1.4762 R1: 1.4910
S2: 1.4685 R2: 1.4981
S3: 1.4614 R3: 1.5058
One Response to “Euro versus Dollar Trend 8 Dec 2009”
Leave a Reply