Euro vs USD - Daily Spot FX Chart 26th May 2009

Euro vs USD - Daily Spot FX Chart 26th May 2009

The euro progress against the US dollar has been blown off course somewhat this morning by an article in the Daily Telegraph which suggests that if the German banks do not get a grip on their toxic debts then the German economy and the broader European market could also suffer as a result along with their consequent effect on the euro.  Early trading in the London session has seen this convert to a significant fall of over 150 pips to date.   Despite this temporary set back, the daily chart for the euro dollar still remains positive for the euro and looks set to continue for some time to come with all three moving averages moving higher and with plenty of support levels below, we should see a resumption in the bullish tone in due course, with this morning’s price action merely reflecting short term nervousness.  The euro has not been helped by the North Korean situation.   My trading suggestion for today is to use the current pullback as an opportunity to enter longer term position trades using the hourly or four hourly charts for your entry point, as we should see a move back above 1.4 and on towards our initial target of 1.42 in due course.

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