Forex chart analysis - Euro vs Dollar Forex Trading Anaysis 18th August 2009

Forex Technical Analysis

An interesting trading session for the euro vs dollar pair which ended the day with a narrow spread doji candle which once again perched neatly on the 40 day moving average, suggesting that the pair may have found some support at the USD1.41 price handle.  With the doji indicating market indecision and the depth of Monday’s wick to the downside, it would not be unreasonable to expect a small move higher in tomorrow’s trading session, particularly as we seem to be experiencing a series of higher lows of which this could be fourth in a series going back as far as early June.   Whilst this is hardly a strong trading recommendation it may provide some opportunities for short term intra day scalping to the long side, whilst longer term position traders will have to wait for a sustained break either to the upside or the downside when the current trading range is finally broken.

Forex Fundamental Analysis

With only German PPI and the Current Account due for release early tomorrow morning and crude oil inventories in the US later in the day trading in the euro vs dollar is likely to be dictated by equity markets and investor appetite for risk.

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