Currency Chart - Euro Dollar Daily Prices 16th April 2009

Yesterday’s candle added to the bearish direction for the euro vs dollar currency pair ending the day on a downbar and with  shadows both to the top and the bottom of the body, with the upper shadow just penetrating the 9 and 14 day moving averages, but with the close of the day finishing below both, adding to the bearish tone.  In overnight trading and this morning’s London session this sentiment has continued, with a failed effort to rise above the moving averages and a resultant fall in the price.  The key for today’s trading will be whether prices break below the support line established fractionally above the 1.3100 level which was first established at the end of March and reinforced twice last week.  If we see a break through this region today then we could see a further fall back to retest support in the 1.2982 area and if this is penetrated we could even see a move to retest the significant area at 1.2550 in due course.  Finally a break below the 40 day moving average will add momentum to this sentiment.  With the triangle pattern now being firmly established on the daily chart as outlined above, a break below the base of the triangle will provide us with our direction for the next few days.  All the fundamental news on the economic calendar relating to the euro and dollar is covered here.

My trading suggestion for today is to continue to look for short positions intra day, with a view to holding these for a longer term should we see a break below the support regions detailed above.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live charts by simply following the links.  I have also included details on an excellent ECN broker.