Euro vs Dollar Chart 14 June 2010

The short squeeze higher in the euro dollar has continued in this morning’s trading with the currency pair opening gapped up from Friday’s close indicating a degree of positive sentiment at present and trading above both the 9 and 14 day moving averages.  However, this short squeeze higher, whilst extended, is unlikely to continue to any great extent with USD1.25 being the absolute maximum of any short term rally.  In the medium term the pair remain firmly bearish and locked in a downwards spiral and the current squeeze higher should be seen as an opportunities to build short positions for longer term trading.

With no fundamental news of any significance for either Europe or the US expect the eurodollar to continue to drift upwards in thin trading volumes as the market waits for tomorrow’s all important German ZEW number as well as the outcome of this week’s EU summit.

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.
Eurodollar News