Euro Dollar Daily FX Chart - 22nd April 2009

Euro Dollar Daily FX Chart - 22nd April 2009

With no fundamental news on the economic calendar for Europe today and precious little in the US either, it seems that for the eurodollar pair we are destined for a day of sideways movement in a very narrow trading range and similar to the pattern seen yesterday.  As I outlined in yesterday’s market commentary this is compounded by the fact that we are now trading in a heavily congested area and therefore any thin news days such as today will produce unexpected prices moves in the market.  All that can be said at present is that the euro vs dollar currency pair remain firmly below all three moving averages which are still pointing to a move lower following the breakout from the flat pattern.  Such a move is always followed by a period of consolidation and reflection and until some momentum returns to the price action I would suggest avoiding the pair.

Some market analysts are suggesting that the euro is heavily oversold and that we may see a bounce towards the end of the week which is perfectly feasible given the platform that is now being created in the 1.2900 region of the last 2 days.  Indeed this platform seems to have been reinforced by this morning’s low so a squeeze higher cannot be ruled out in the very short term.  Tomorrow and Friday see a welter of news items being released which will certainly bring some much needed price action to the market.

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