Euro vs Dollar - EUR vs USD Daily Candle Chart 7th July 2009

Euro vs Dollar - EUR vs USD Daily Candle Chart 7th July 2009

An interesting technically on the daily chart for the euro vs dollar with the pair beginning the day in negative territory only to end on a positive note.  The daily candle reflected this with a deep lower shadow which closed above the 40 day moving average, having initially penetrated this indicator during the trading session, and closed marginally above the 14 day moving average.  This candle suggests that a mildly bullish tone has returned to the euro vs dollar in the short term and, as a result, we may expect to see the Euro move higher during the course of today and tomorrow.   A close and hold above the 9 day moving average today will confirm this view and indeed the German fundamental news which has been positive today has certainly helped the Euro achieve this goal.  Only a break and hold above 1.43 can be considered a positive signal to any longer term rally and what seems more likely is that we will see further range trading between this upper level and 1.38 at the lower level.  One of these technical levels will need to be penetrated for the pair to develop a trend away from the current range-bound consolidation.

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