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Euro vs Dollar – January 30th 2009

Euro vs Dollar - Daily Candle Chart January 30th 2009

Yesterday’s trading saw some direction come back into the euro vs dollar pair for us, with a significant down candle, which has broken both the 9 day and 14 day moving averages, now confirming this as a reversal, and a possible continuation of the trend we have seen from the middle of December. Whilst my suggested trades for today would be to attempt short positions with stops above 1.3300 or higher, I believe we have to trade carefully with the resistance at 1.2850 and again at 1.2550. A break through either of these would indicate a target of 1.2450 in the medium term, but I must stress that this is dependent on the current support being breached, and I do have a slight worry that the euro vs dollar pair could bounce off either of these levels as it look to “re-base” itself, so as always, trade with care and with carefully placed stops.

The principle fundamental news out later today is in the US again, with the release of the advance GDP figures which are a significant indicator. I am about to update the fundamental euro to dollar site with details shortly. Have a great morning trading, and a good weekend. My suggestion would be for intra day traders and scalpers to place trades this morning and to take any profits off the table before the release in the afternoon, which is my own strategy for today.

The short term is bearish, with the medium and long term sideways.