euro vs dollar

Euro vs Dollar Chart 22 July 2010

Yesterday’s wide spread down candle provided us with a strong signal that the recent upwards rally is now beginning to run out of steam, as I outlined in my previous market commentary for the euro vs dollar.  Following three failed attempts to breach USD1.3028 the recent bullish trend now appears to be struggling with yesterday’s price action breaching the 9 day moving average but finding support from the 14 day.  In early trading today the pair have bounced back and currently trade at USD1.2868, marginally below yesterday’s open.  With the short term resistance level now set any continuation of the rally will need to see a break at USD1.3028 and a clearance here could take the pair up to re-test resistance at USD1.3250 in due course.  However, provided yesterday’s bearish signal is validated then we should expect to see the euro vs dollar break below the 40 day moving average in due course and re-test USD1.18 in the medium term once again.

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