Euro to Dollar - Daily Candle Chart 14th July 2009

Euro to Dollar - Daily Candle Chart 14th July 2009

Trying to predict or even analyse the euro vs dollar daily candle chart is practically impossible and becoming more and more difficult.  There is little one can say as the pair continue to be constrained in an ever narrowing price range.  As the pennant pattern continues to form and the moving averages are now twisted tightly together any analysis is almost futile and we must now wait for the inevitable breakout which will be accompanied with both volatility and momentum.  The best way to trade such a scenario is either using currency options or fixed odds trading or binary betting and all these strategies on my various websites.   To return to the chart yesterday’s candle closed with a narrow body and deep lower wick suggestive of a possible move higher as the general tone seems to favour this aspect rather than any bearish element at present.  With the earnings season due to start with the Goldman Sachs stellar results allied to the PPI data and retail sales (probably flat) these may well kick equity markets into life with a consequent knock on effect in the US Dollar which may suffer as a result as investors increase their appetite for risk, once again.  However, this may only be a short term reaction (much like the NFP data) but one which may present an intra day opportunity for those of you aligned to this method of trading.

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