Euro vs Dollar - Daily Candle Chart 18th February 2009

Euro vs Dollar - Daily Candle Chart 18th February 2009

Well, at last it happened yesterday with a wide spread down candle, finally breaking out of the triangle pattern that had formed over the last few weeks. Without wishing to sound boring, but in any form of trading you have to be patient, and this was a classic example. It would have been very easy to jump in early and guess that the bearish move would continue ( which was the direction I suspected) but why take the risk. We are now in a position where we have a very clear signal, which we should now be trading with for the next period, as we have now broken through the support level created in the last few weeks, which now of course becomes resistance and protection for us, on any reversal. The target for the next few days is the congestion around the 1.2200 region and should this be penetrated then I expect a move lower to 1.1850 in the next few weeks. My suggestion for today is to open short positions with a stop loss above yesterday’s opening price. With all the moving averages now pointing lower the trend now seems to be established and we should make some profitable trades in the short term with confidence. I have outlined the main fundamental news on the euro to dollar site for you today.

The short term, medium term and long term are all bearish!!