Euro Dollar Daily Candle Chart - EUR/USD 7th August 2009

Euro Dollar Daily Candle Chart - EUR/USD 7th August 2009

With the markets now waiting for the Non Farm Payroll Data which is due out in the next 45 minutes, the Eurodollar is following much the same pattern as all the currency pairs and commodities with a pause.  Yesterday’s ECB rate decision and subsequent statement had a relatively muted impact on the Eurodollar which continued to trade in a very narrow range ending the trading session on a down bar with small wicks to top and bottom.  This followed two days of previous indecision in this pair marked by two doji cross candles.  The 1.4450 price handle now seems to be presenting modest resistance to any move higher and only a weekly close above here would indicate that the Euro is ready to continue the recent breakout.  My initial target for this pair remains 1.47 with 1.50 in the medium term.  Today’s Non Farm Payroll data cannot be underestimated and unlike previous releases, today’s numbers may well prove pivotal for the US Dollar for many reasons all of which I have explained in more detail on the euro to dollar site.  Whether the numbers are good, bad or indifferent, or indeed how they are perceived by the markets, the fact remains that technically the Eurodollar remains in a strong bullish position and with the depth of support now below any temporary reversal is likely to bounce higher in due course.

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