Euro vs Dollar - Daily FX Chart EUR/USD 15th June 2009

Euro vs Dollar - Daily FX Chart EUR/USD 15th June 2009

The G8 and G20 meetings have come and gone with virtually no appreciable effects on the markets.  Friday’s candle provided yet another day of sideways movement and general indecision mirroring the equity markets, and closing the session with a bearish tone below both the 9 and 14 day moving averages.  This sentiment has carried through into this morning’s trading session and it is interesting to note from a technical perspective that the 9 and 14 day moving averages have now crossed suggesting that we are likely to see a short, and possibly longer term, reversal from the high of 2 week’s ago at 1.43.  The reason for this morning’s reversal is due partly to a report in the German media that the banking crisis is deeper than expected and the horror stories are likely to be revealed later this week in a report from the German Chambers of Commerce coupled with a degree of dollar strength fuelled by a waning of risk appetite.  The depth of the move lower will depend on several factors, not least whether the euro vs dollar finds support in the 1.36 region initially, but if not and this is then coupled with a break below the 40 day moving average then we could see a much deeper move possibly to re-test support in the 1.29 region last seen in the middle of April.

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