Home » Euro vs Dollar Daily Chart » Euro vs dollar daily market analysis – 27 September 2012

Euro vs dollar daily market analysis – 27 September 2012

euro vs dollar daily chart with the daily and weekly fatman

Euro vs Dollar – Daily chart and daily /weekly Hawkeye Fatman

The recent short term bearish sentiment for the euro has come as no great surprise to Hawkeye forex traders, as the daily Fatman gave a clear signal last week that the euro was over bought against many of the majors, with the euro weakening this week on both technical and fundamental issues. The reversal in the recent bullish trend on the daily chart was signalled last week with an isolated pivot high on the daily chart as the euro dollar tested the 1.3170 region. Since then we have seen the euro weaken against the US dollar, with selling volume appearing as the trend flattened and moved lower. Yesterday’s price action delivered a white trend dot on the daily chart adding further to the current bearish sentiment. However, it is important to note that the Hawkeye heatmap has yet to transition and remains firmly bullish for the time being, suggesting that this may only be a temporary pause in a longer term bullish trend for the pair. Indeed the daily Fatman continues to signal short term weakness for the euro ( the green line on the indicator) and with some way to go, we may see the current bearish sentiment continue to the 1.2750 region on due course.

Moving to the longer term, the Hawkey weekly Fatman indicator continues to signal bullish momentum for the euro with the green line rising sharply, and the US dollar ( the cyan line ) falling, suggesting that in the medium term we are likely to see a continuation of the longer term bullish trend, and a move back towards the 1.3200 region an beyond over the next few weeks.

The fundamental issues continue to dominate the euro of course, with Spain taking centre stage yesterday, and triggering weakness in risk assets following the Spanish bond auction. The reason? The possibility that several countries including Finland, Holland and Germany may renege on any bailout deal for the country. The markets now appeared to have absorbed this latest piece of Eurozone nonsense, and with China now injecting 58 billion into the money markets, the sun is shining once again!!

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