Euro vs Dollar - Daily Candle Chart 11th February 2009

Euro vs Dollar - Daily Candle Chart 11th February 2009

My advice of yesterday still stands – in other words stay out of this pair for the time being! Yesterday was yet another doji candle to add to the long list, and continuing and sustained sideways movement in the euro vs dollar pair. With the moving averages having converged and the pair consolidating into a pennant then this is no time to be trading in the short term, until we have some clear signals for the future direction of the currency pair. Yesterday’s candle gave us no help at all, and despite the turmoil in the equities markets last night, this volatility failed to extend into the US dollar against the euro. The fundamental news for today is all in the US, with several speeches by key FOMC members and of course the weekly oil figures – more details are available at the euro to dollar site.

The short term outlook is sideways, the medium and long term is bearish.