EUR/USD - Daily Candle Chart 6th March 2009

EUR/USD - Daily Candle Chart 6th March 2009

Little has changed on the technical front, with yesterday’s down candle simply adding further to the sideways movement of the pair, with prices once again failing to breach the 9 day moving average. Even this mornings rally, which was largely attributed to some comments by Trichet in Europe, seem to have done little, with the current price falling back once again below all three moving averages. The long slow consolidation in a falling wedge continues unabated, and until we see some clear direction then my advice is to stay away from trading this pair and look for opportunities elsewhere. With the NFP figures being released shortly, this will at least inject some volatility into the euro dollar pair, but whether this then leads to any clear signal, seems unlikely at present. As I have said many times before, we need to see a clear break through 1.3300 for a reversal higher, and below 1.2200 for a break to the downside. Until either of these occurs, it is impossible to forecast which direction the currency will take longer term. On balance the bearish momentum seems more likely, from the daily chart. All the latest news including the NFP figures are now available on the live news feed, with the latest currency news in the TV video channel, with the latest prices updated on the live currency charts.

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