Eur vs USD Daily Chart - 10th July 2009

Eur vs USD Daily Chart - 10th July 2009

Yesterday’s wide spread up bar on the euro vs dollar daily chart was largely as a result of the Chinese renewed criticism of the US Dollar which came as a bit of a surprise to many markets who had assumed that this topic was no longer on the G8 agenda.   Despite this anti dollar rhetoric and apparent momentum the EUR/USD pair continued to trade sideways in a consolidating range which has a mildly bearish flavour as prices oscillate and sink slowly lower.  There is little that we can glean from an analysis of the moving averages as these are now virtually superimposed and tightly meshed, a consequence of a similar picture on the Dollar Index.  What is curious to note is that given the substantial and rapid fall in crude oil prices over the last two weeks this has not translated into a harder and faster fall in the Euro.  At some point we will see a volatile and dramatic break from this current range but it is not clear at this stage what the trigger will be, or indeed, the direction in which the price will go.  A break and hold above 1.43 is needed to the upside and a break and hold below 1.3750 will suggest a move to the downside.  There are a number of items of fundamental news on the economic calendar for the eur vs usd today and these are covered on the main Eurodollar site.

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