Euro vs Dollar - Daily FX Chart EUR/USD 16th June 2009

Euro vs Dollar - Daily FX Chart EUR/USD 16th June 2009

Several interesting elements to consider on the euro vs dollar daily currency chart as we ponder the direction for the currency pair in the short to medium term.   The first point to note is that we now seem to have a neat “head and shoulders” pattern on the daily chart which was completed with yesterday’s wide spread down bar suggesting that we may have reached an interim top on the Eurodollar rally of the past few weeks.  The second point to note which reinforces this view is that the 9 and 14 day moving averages have now crossed indicating that the sentiment may have changed from bullish to bearish.  The third aspect centres around the various support and resistance issues and the key here is twofold: whether the 40 day moving average can provide a barrier to a deeper move lower coupled with the strong support currently in place in the 1.36 price region.  Should the 40 day moving average not hold, and the support region outlined above be breached, then we could see a much deeper move possibly to re-test support in the 1.3250 area or even lower in due course.  Much will depend on the fundamental picture and, in particular, the statement due from the German Chamber of Commerce later this week which could have a significant impact on the Euro and its relationship to the USD.  All other items of fundamental news on the economic calendar pertinent to this pair are covered on the Eurodollar site.    My trading suggestion is to attempt to find small short trades using the hourly charts on an intra day basis.

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.