Euro vs Dollar - Daily Forex Chart 28th April 2009

Euro vs Dollar – Daily Forex Chart 28th April 2009

The bearish channel that I outlined on yesterday’s chart was confirmed in a very dramatic fashion, prompted in no small part by Ewald Nowotny’s off message comments following a speech in New York where he suggested that any means would be considered by the ECB to restore consumer confidence and credit conditions.  Coupled with swine fever, general global collapse, bank stress tests which are suggesting that both Bank of America and Citigroup may require additional funds to shore up their capital base, all combined with Mr Nowotny’s comments into a vortex of fear and alarm with the consequent dumping of Euros and buying of US Dollars.  All of this only going to prove one thing, that trading currency can, at times, be a bit of lottery, so what of today?  A good question and one which I will attempt to answer.

Yesterday’s unforeseen down bar closed below all three moving averages reversing the gains of the previous two trading sessions and reinforces the trading channel outlined in yesterday’s chart which now seems to be creating a series of lower highs and lower lows initiated on the 20th March.  The downward trend has continued in the London session this morning and for any sustained move lower we now need to see a break below the previous low of the trend at 1.2890.  If this price point is broken then we could see a move even as far down to re test the lows of early March at 1.25.   My trading suggestion for today is to attempt small short positions with a stop loss above the previous high of the trend and to look for entry positions on the intra day 15 and 30 minute charts.

In the meantime you can keep up to date with all the latest fundamental news, latest currency news and live currency charts by simply following the appropriate links.  In addition I have provided information on an excellent ECN broker.