euro vs. dollar

Euro vs Dollar 26 Aug 2010

Yesterday’s price action on the euro vs dollar encapsulates the current feeble attempt to rise by the euro at present which may continue for a few days, before we see the inevitable move lower.  In yesterday’s trading session the move higher was promptly snuffed out by the 9 day moving average leaving a candle with a narrow body with a wick to the upper side.  This price action has been repeated once again overnight in the Asian session and carried over into the London session, with the US markets about to open at time of writing.  This morning’s high at USD1.2746 has been capped once again by the 9 day moving average with the pair currently trading lower at USD1.2685 at time of writing. Patience is required before opening any positions for the move to the downside with the 14 day average now signalling a bearish move lower as it crosses below the 40 day moving average.  Once Tuesday’s low has been cleared at USD1.2587 then expect to see the euro vs dollar push lower, initially to re-test USD1.2467 and thereafter the underside of the price congestion in this area at USD1.2151.  In the medium to longer term expect to see USD1.1876 re-tested once again.

Today’s fundamental news for the euro vs dollar has been restricted to loan data for Europe (up from previous) and the unemployment claims for the US (better than expected) as markets wait for tomorrow’s preliminary GDP for the US.  This lack of news & thin trading volumes will keep the euro vs dollar to its current narrow trading range.

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Euro supported as stocks stabilise