Euro vs Dollar - EUR vs USD Daily Chart 3rd July 2009

Euro vs Dollar - EUR vs USD Daily Chart 3rd July 2009

Yesterday’s candle on the euro vs dollar daily chart ended the session as a wide spread down bar largely as a result of the worse than expected unemployment figures released in the US which subsequently led to a sell off in equities and a consequent strengthening of the US Dollar.  The candle closed the session below both the 9 and 14 day moving averages but interestingly found some support from the 40 day moving average which held the low of the day from a further fall.  The signal thus created was one of a bearish engulfing pattern which would suggest that we may see a further fall in the Eurodollar in due course, but this may not be validated today owing to thin market volumes as a consequence of the national holiday in the US for Independence Day.  Therefore, we will have to wait until early next week for any confirming price action, and for this to be considered seriously we will need to see a break and below the 1.38 region for any move lower coupled with a reversal of the 9 and 14 day moving averages.  For Euro bulls only a firm weekly close above 1.43 will signal any Euro strength.

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