EUR/USD 24th March 2009 - Daily Candle Chart

EUR/USD 24th March 2009 - Daily Candle Chart

Yesterday’s daily chart for the euro vs dollar ended the day with a long legged doji and provided us with an excellent trading signal for the short term.  This candle pattern is one of the strongest signals to trade and always indicates indecision and therefore a possible change in sentiment and hence the reversal in any rally or fall.  In addition, in this case, the highest price of the last 3 days failed to penetrate the 1.3750 region adding weight to the reversal signal.   If you traded nothing else but doji candles (in any time frame) you would make money.  I hope you picked up my twitter last night where I suggested short positions for today and I have already twittered several times this morning before updating this post.

If you have already opened short positions (or are thinking of doing so) just remember that this afternoon we have both Ben Bernanke and Timothy Geithner speaking on the AIG situation to the House Financial Services Committee and in the economic calendar this has been red flagged.  Although this event is unlikely to have quite the same impact on the stock market as yesterday when the proposals to buy back toxic assets and mortgage backed securities were announced, nevertheless you need to exercise some caution and place your stops with care.

All the latest news is now available on the live currency charts, latest currency news on video, and the fundamental news is updated on the economic calendar, along with details of how to find a good ECN broker.