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Euro vs Dollar 30 Sep 2010

euro to dollar

The euro vs dollar continued to push higher once again yesterday ending the forex trading session as a narrow spread up candle as the pair approached the key resistance area at USD1.3679.  This upwards momentum for the euro has been assisted both from a technical perspective and from a fundamental one, with the euro benefitting from the sustained weakness in the US dollar at present, following the recent statement from the FOMC hinting at further QE2 measures.  From a technical perspective the daily chart remains firmly bullish with the euro climbing higher in this morning’s trading once again to trade at US1.3657 at time of writing, marginally below the key resistance level outlined above.  This upwards trend is receiving strong support from both the 9 and 14 day moving averages and, with the latter now crossing the 200 day average, this is all adding to the bullish sentiment in place at present.  The next key target is now clearly established on the weekly chart with the 200 average at USD1.3913 with any break here opening the way to a move higher once again through USD1.40 and beyond in due course.

This morning’s Irish banking crisis and Spanish downgrade only caused a minor ripple for the euro vs dollar and the only other item of significance is this afternoon’s unemployment data in the US which is forecast to show a slight fall to 458k from 465k the last time.  Later in the day Fed Chairman Bernanke is due to testify before the Senate followed by a second speech at a conference in the afternoon.

Euro loses ground (but not against the US dollar)