Euro vs Dollar - Daily Chart EUR/USD 27th JUly 2009

Euro vs Dollar - Daily Chart EUR/USD 27th JUly 2009

The euro vs dollar continues to trade sideways at this level, with Friday completing the full house of five straight days of indecision. The question of course that everyone is asking is whether the US dollar will continue to weaken, with a consequent rise in the euro vs dollar ( amongst others ). From a technical perspective the daily chart is beginning to look weak, as the pair continue to struggle at this level, each day attempting to rise, only to fall back later. Indeed we have seen this once again in trading today, with an early rise in the European session, promptly squashed as the New York session gets under way. However, whilst this may be the first sign of weakness, it has yet to be confirmed, and with all three moving averages providing support below, this is far from the case at present. Only a break below the moving averages, coupled with a break and hold below the 1.38 price handle would confirm this picture, whilst from a fundamental perspective all the talk is of risk appetite and the continued surge in the equity markets, which will of course counter this view entirely. This would seem to be the picture confirmed by the US dollar index which remains stubbornly bearish, with little indication that it is ready to turn just yet.

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