Euro Dollar Daily FX Chart - 8th May 2009

Euro Dollar Daily FX Chart - 8th May 2009

Yesterday’s daily candle on the euro dollar chart provided yet more evidence of indecision finishing the day on an up bar but with long shadows both to the top and bottom of the body and indicative of an uncertain market and one which is desperately looking for direction.   With all three moving averages suggesting a move higher and with the 9 day now crossing the 40, the bias certainly seems to be on the bullish side at present and we may expect a move to re-test the 1.35 region or above in due course.  However, with the NFP data due for release shortly my suggestion for today is to wait for the release of the numbers in the next hour and then to trade the news with my usual trading strategy.  For those of you who have forgotten (shame on you as we did very well last month!) or who are, perhaps, reading this for the first time I will provide a brief summary.  In simple terms wait for the release of the news, and then allow the markets to absorb the data for the next 5 to 10 minutes as this is usually a knee jerk reaction before the numbers are analysed in detail.  At this point open a position in the opposite direction to the initial move and then close out any profits as signals dictate, making sure you have a stop loss in place when opening the trade.  As always I will be providing live updates on twitter as the news comes in.

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.