Euro vs Dollar 5 Oct 2009 Chart

Euro vs Dollar 5 Oct 2009 Chart

The euro vs dollar continued to recover from its recent reversal lower yesterday with another solid performance, ending the day with a neat up bar, which just failed to breach the 14 day moving average, but suggesting that we may see an attack on the 1.48 price point once again, and should this be breached then our initial target of 1.50 will be clearly in view.  Indeed with the recent ‘rally’ for the US dollar now appearing to stall following the worse than expected NFP figures last week, the bullish tone for the euro vs dollar is now firmly back in place.  With the 40 day moving average also providing good support to the move, and with the 9 day now looking to recross above the 14 day moving average,  this should give us a bull cross signal, and provided this is combined with a break above the 1.48 price point, then we should see s sustained breakout higher in the short term for the euro vs dollar pair.

With only the French Government Budget Balance due out this morning and no significant items of fundamental news on the economic calendar in the US today should provide us with plenty of trading opportunities, in other words buy the rumour and sell the fact!  The rumour for the dollar is the question as to how long it can retain its reserve status & the fact is that the RBA (Royal Bank of Australia) has raised interest rates.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.