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Euro vs Dollar 9 Nov 2010

euro to dollar

Yesterday’s wide spread down candle on the euro vs dollar chart pushed the euro to dollar below both the 9 and 14 day moving averages and closing the trading day at USD1.3863.  Much of this downwards momentum was generated by the fundamental landscape where market concerns surrounding sovereign debt and banking problems weighed heavily on the euro throughout the day, with the pair also helped lower by a degree of dollar strength.  Whilst this appears to be a temporary pullback we now need to wait for normal service to be resumed once again and from a technical perspective this means a break and hold above the 9 day moving average which currently sits at USD1.4003 on the daily chart.  With the euro already having made significant gains this morning and currently trading at USD1.3955 we may well see this achieved later in the trading today and, if so, then this will signal the resumption of the recent upwards trend for the euro to dollar.  In addition a break and hold at this price level will also clear the current price congestion in this region which will then provide a platform of support for a continuation of the move.  For the longer term trend to be re-established we need to see a hold above last week’s high at USD1.4282 and once achieved will provide the requisite springboard to USD1.45 and beyond.