Euro vs Dollar - Daily Chart For The Eurodollar 29th May 2009

Euro vs Dollar - Daily Chart For The Eurodollar 29th May 2009

Yesterday’s wide spread up on the daily chart for the euro vs dollar, reversed much of the loss from the previous day, and suggested that perhaps the hanging man candle, first seen on Tuesday, may in fact be a false signal, with the close of the day finishing well above the 9 day moving average which once again seems to be providing good support to the sustained move higher. The tone for this morning’s trading session has seen a similar pattern with prices breaking above the psychological 1.40 and moving past the 1.4100 price point, as we now await the GDP numbers from the US, however from a technical perspective, a close at this level or above will confirm that we can ignore the bearish signals of  Monday and Tuesday, and look for the bullish trend to continue in due course. With European markets closed for a national holiday on Monday, we may have to wait until later in the week before we see prices continue with a sustained move higher towards our initial target of 1.4325, and with all three moving averages providing solid support.

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