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Euro vs Dollar 6 Sep 2010

euro vs. dollar

Friday’s non farm payroll data which came in slightly better than expected provided a boost for the euro vs dollar on Friday, much as forecast in our market commentary.  The resultant candle marginally breached the 40 day moving average as a result but with no great conviction and with the major forex markets of Canada and the US closed for the Labor Day holiday today, it is difficult to draw any firm conclusions from today’s lacklustre trading activity.  Whilst the longer term picture for the euro vs dollar remains firmly bearish, in the short term we can expect to see some further gains for the currency pair, possibly even pushing as high as the USD1.3250 area where the previous rally ran out of steam in early August.  This short term technical picture is further confirmed by the moving averages with the 9 day crossing above the 14 day and giving us a bull cross signal as a result.  In summary, therefore, given the bearish picture of the usd index at present we can expect to see further gains for the euro vs dollar before market sentiment reverses and the pair re-establish their longer term trend lower with a move to break USD1.20 and beyond.

All this week’s fundamental news for the forex market and the euro vs dollar can now be found at my main forex trading site.