euro vs. dollar

Euro vs Dollar Forex Chart 2 Aug 2010

With a dearth of fundamental news for Europe this week forex trading in the euro vs dollar may be desultory but at the same time whipsaw as the forex markets latch on any rumour and market gossip with Friday’s non farm payroll being the highlight of the week.  Last week saw the euro vs dollar grind higher, much as expected, with the recent bullish trend fully supported by both the 9 and 14 day moving averages and with the 40 day moving average now pointing higher suggesting a further development of this trend in due course.  However, the spreads of the last forex trading sessions have remained extremely narrow suggesting that the trend may be starting to peter out as the pair begin to run into sustained price congestion above in the USD1.3184 and beyond.  Coupled with this we also have the 200 day moving average now lurking ominously above with these combining at USD1.3566 to present a formidable obstacle to any further rally and as such we can expect a return to the recent bearish trend in due course, but only once we see a break and hold below USD1.2708 and beyond.

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August at the ECB – will there be a surprise?