euro vs. dollar

Euro vs Dollar 24 Aug 2010

Yesterday’s narrow spread down candle on the euro vs dollar chart added further weight to an already bearish picture which is now beginning to gather itself for a substantially move as part of the resumption of the longer term downwards trend.  Today’s narrow spread up candle has provided a temporary pause point to this longer term move but  this minor bounce higher in today’s trading appears to have been snuffed out, failing even to reach the 9 day moving average situated immediately above.  With the 14 day now approaching the 40 day, and the 9 day having already crossed below, this is adding further significant pressure to the euro vs dollar pair and with the 200 day sitting well above the longer term outlook for the single currency remains bleak and a move to re-test support USD1.1876 seems inevitable in due course.  The only technical obstacle to this analysis is some relatively potential price support at the USD1.2354 to USD1.2151 area and a break of the latter level will open the way to move down to USD1.20 and beyond.  The current bearish picture is merely validating the bearish engulfing candle which we signalled two weeks ago on the weekly chart.

This week’s fundamental news for the euro vs dollar is now posted on the main forex trading site.  However, market mood continues to be gloomy and risk averse as investors continue to pile into bonds with a consequent drop in yields.

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Foreign buyers flock to Treasuries