euro to dollar

Euro Dollar 25 Oct 2010

Following last week’s bullish engulfing signal on the daily euro vs dollar chart the pair have pushed higher this morning supported both by the strong technical picture and also the fundamental backdrop of the G20.  With further dollar weakness now expected the bullish trend for the euro should now continue with renewed momentum and indeed in this morning’s early morning forex trading session the pair has broken through the psychological USD1.40 level to trade at time of writing at USD1.4017 and looks set to test the high of two weeks ago at USD1.4159 in due course.  This morning’s price action has pushed the euro vs dollar back above all four moving averages once again with both the 9 and 14 day combining to provide a strong platform and springboard for a move higher. The 40 day has crossed firmly above the 200 day, adding further weight to the analysis, and once the 200 day begins to incline upwards then this will complete the bullish picture for the pair.  With the usd index looking firmly bearish, any break and hold above USD1.4159 will cement the move and we then look to a test of USD1.4579, the high of late 2009 as the trend develops further.

With no significant fundamental news for either the euro or the US dollar, other than a speech from FED Chairman Bernanke, today the main market driver will be the ongoing issues surrounding the G20.