Euro vs Dollars Forex Chart Analysis 23 Sep 2003

Euro vs Dollars Forex Chart Analysis 23 Sep 2003

Forex Trading Analysis for Euro vs Dollar

The euro vs dollar continued with its strongly bullish sentiment once again yesterday, ending the trading session with a wide spread up candle which found solid support from the 9 day moving average, suggesting that the current trend remains firmly in place. With all three moving averages pointing sharply higher and with the two minor hammer signals confirmed by yesterday’s strong performance, we can now look towards our initial target of 1.50 being achieved in the next few days. Whether we will see a re-test of the deep resistance now in place at the 1.53 region remains to be seen, and much may depend on the FOMC rate decision and statement due for release later this evening in the US.  The euro vs dollar has, of course, been one of the major beneficiaries of sustained US dollar weakness as the greenback has continued to fall largely as a result of the ultra low interest rates.  This has seen the US Dollar become the new darling of the carry trade which, until recently, had been the role allocated to the Japanese Yen.   Should today’s FED statement suggest that interest rates are likely to be raised sooner rather than later, then this could trigger a significant shift in US dollar sentiment, with a consequent reaction in the euro vs dollar pair. Naturally all the markets will be keenly waiting for the news later today, and until then we may see a period of sideways movement for the euro vs dollar during the early morning and afternoon trading sessions.   Meanwhile all the forex fundamental news for this pair can be found on my euro to dollar site.

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