An interesting couple of days for the euro dollar pair, with yesterday’s interest rate rise increasing the differential between the two currencies, followed by the Non Farm Payroll numbers which surprised the markets with another bad number. With all the problems in Europe the rational expectation is for the euro to collapse against all other currencies, so how does it continue to survive, given the problems in Greece and the other lame ducks of Europe. Well the answer lies in the fact that the euro is a political currency and therefore rational price action is rarely the norm making trading of any euro pair extremely difficult. This short video explains some of the issues and how the currency pair has reacted over the last few days to the flow of fundamental news.
My trading and investing sites
- An introduction to trading and investing
- Ask Anna
- Binary betting trading
- Copper futures
- COT report analysis
- Covered call writing
- Crude oil futures
- Currency futures trading explained
- Currency options trading
- Daily oil price analysis
- Develop and write a trading plan
- Dow jones futures
- Euro dollar news
- Euros to pounds analysis
- Financial betting
- Financial spread betting
- Fixed odds trading explained
- Fixed odds trading tips
- Forex demo account
- Forex market hours
- Forex trading analysis
- Forex trading forecasts
- Free download of metatrader MT4
- FTSE bettiing
- Full service commodity broker
- Futures trading online
- Gold futures
- Japanese candlesticks explained
- Learn forex trading
- Mutual funds explained
- Online commodities trading
- Online trading software
- Option trading the straddle strategy
- Options trading explained
- Pounds to dollars analysis
- Silver futures
- Spot gold market analysis
- Spot silver market analysis
- Spread betting strategies
- Stock market virtual games
- Trade stocks online
- Trading and investing news
- Trading oil
- USD to CAD analysis
- Virtual stock trading
- Yen to Dollar analysis
Archive for eur/usd
Euro vs Dollar 1 Nov 2010
With the markets all waiting for both the results of the US mid term elections which coincides with possibly one of the most important FED meetings of all time, we can expect desultory trading until all hell breaks lose on Wednesday. Meanwhile, Friday’s price action on the euro vs dollar gave us a strong signal that any breakout from the recent sideways price action is likely to be to the upside with the pair probing lower in the morning session only to close back above both the 9 and 14 day moving averages by close of business. The interesting point to note from the last three trading sessions was that each subsequent low is higher than the last, and indeed above the lows of the previous week suggesting once again that the break out is likely to occur on the bull side which also aligns with the fundamental picture where the market is expecting further dollar weakness as the QE2 programme rolls out. From a technical perspective the first key price level is USD1.4159 and any break above here will then open the way to a re-test of resistance of USD1.4217 and provided the FED programme gives the dollar kick lower, as expected then we should see the euro dollar the USD1.4579 are in due course. Whether it will achieve the highs of 2009 at USD1.5140 is debatable but if the FED is as aggressive as suggested then this may well be the case. The 40 day moving average remains firmly supportive of any upwards move and with the 200 day beginning to turn higher then the outlook remains bullish for the euro.
Euro vs Dollar - Daily Forex Chart 7th September 2009
The euro vs dollar forex pair, ended last week in much the same way as they started, perched neatly on all three moving averages, but showing little sign at present of breaking out above the current sideways consolidation. The hope on Friday was that the Non Farm Payroll data might provide some sort of catalyst of fundamental news to kick start the pair out of their current trading malaise, but this was not to be, and the forex trading session closed with a doji candle, once again indicative of a market that is indecisive at present. The only conclusive analysis one can draw is that the 40 day moving average once again provided support to the low of the day, suggesting that any break, when it does occur, will favour the upside rather than the downside. This view is supported by the fact that as we creep ever higher, the chart is displaying a series of higher highs, but with the moving averages now tightly bunching, we need to be patient and wait for the breakout to occur.
With the US markets closed today for a national holiday and Labor Day, it seems unlikely that we will see any meaningful moves in the euro vs dollar today, as the only items of fundamental l news on the economic calendar are in Europe, and minor ones at that, so we will have to wait until Tuesday at the earliest. The two releases due for today are covered in more detail on the euro to dollar site for you.
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.
Chart Analysis - Euro vs Dollar Charting Analysis
Forex Technical Analysis
Yesterday’s early price action on the euro vs dollar pair was dominated by a further 4.3% fall in the Shanghai Composite, just two days after a 5.8% decline, leaving the Index 19.8% down from its 2009 high, achieved on 4th August – theoretically marking the start of a bear rally. However, Europe and Wall Street managed to hold firm and once the crude oil inventory figures had been released causing oil prices to race above the $72 per barrel price point, equities regained their poise along with the Euro. The euro vs dollar forex trading session ended the day on a relatively wide spread up bar but with a deep lower wick. Interestingly the trend of higher lows continued yesterday as we suggested it might, with the low of the day finding support yet again from the 40 day moving average as the Eurodollar once again attempts to push through the USD1.43 price handle. The close of the session ended marginally below the 14 day moving average which seemed to offer a minor level of resistance. The key for today’s technical forex trading will be whether the USD1.43 level can be breached and, if so, then we may well see a further attempt to break out from this range in the medium term. My trading suggestion for today given the depth of the lower shadow to yesterday’s candle is to attempt small longs using tight stops on an intra day basis but with caution given the USD1.43 resistance level which is now very close at hand.
Fundamental Forex Analysis
With no fundamental news on the economic calendar for Europe, forex market traders will be concentrating on the unemployment claims, Philly Fed Manufacturing Index and the CBI Index due out later today. Should these exceed expectations then this may tempt traders and investors into riskier assets thereby causing yet more pain for the US Dollar.
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.
Euro vs Dollar - Latest Currency Rates EUR/USD 12th August 2009
Following the recent “waterfall” in the euro vs dollar yesterday’s price action came as no great surprise as the currency pair attempted to re-base around the 1.41 price point ahead of the FOMC meeting which is due to complete later today. The low of both Monday and Tuesday seemed to find some support from the 40 day moving average, and indeed this has been replicated during this morning’s London trading session where the low has once again bounced off the 40 day moving average. This would tend to suggest that there is some support at this level. however whether it is likely to hold is anyone’s guess and the medium term direction for the Eurodollar (as for many other pairs) will be driven by the market’s reaction to the FED statement. Should the Committee indicate that interest rates may have to rise in the short to medium term this could convert into further Dollar strength as the currency markets react positively to an improvement in the dollar yield. If this creates a strong bullish move in the dollar then any break below the 1.38 region could herald the start of a longer term decline for the Euro moving into Q3.
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.
Euro vs Dollar - EUR/USD Daily Candle Chart 11th August 2009
The current sea change of sentiment towards the US Dollar has resulted in a huge shakeout in the euro vs dollar pair. Whether this is a temporary reversal or the start of a renewed love affair with the greenback still remains to be seen and perhaps we may have a clue once this week’s FOMC meeting is concluded. Should the Committee decide to signal the possibility of higher interest rates then this could be seen as Dollar positive and speed up the current decline in the Euro still further. From a technical perspective yesterday’s down bar merely added further downwards pressure on the Eurodollar pair as it pushed ever deeper into the strong support between the USD1.375 and USD1.425 price band, closing just above the 40 day moving average. Any dollar positive news from the FED could create another wide spread down bar on Wednesday/Thursday which may provide sufficient momentum to break below the bottom of this channel. Should this occur then this may well signal the end of the current rally for the Euro and a prolonged period of Euro weakness and Dollar strength.
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.
In this easy reading guide, I reveal the tips, techniques and lessons that I have learnt which have helped me to become a successful forex trader. Grab your FREE copy by simply completing the details below, and discover how you can follow in my footsteps, as I guide you along the path to success.
Latest forex analysis
- GBPJPY – Moving Lower February 1, 2012via annacoulling.com This pair still moving lower. […]coulldc
- FX street video – GBP/JPY looks set to move lower January 27, 2012via annacoulling.com Move lower has duly occured. […]coulldc
- Euro Shorts Feeling The Squeeze! January 19, 2012via annacoulling.com As euro continues to defy its critics – equities ticking up & Chinese new year next week – it’s a really great time for trading! […]coulldc
- A Great Trade On the Aussie Dollar January 4, 2012via annacoulling.com Aussie is now best currency to watch for market view on risk. Great trade today on aussie dollar as equities continue to move higher for the time being. […]coulldc
- Risk to hurt record long dollar positions? January 4, 2012We are back. Back to half-truths, a little despair and hope. The Euro agenda has not changed, leaders are out to save their beleaguered union, their currency and years of hard grafting. The US will spend the next 10-months deciding who has the honor of leading their once proud economy. China, again, will have to […]coulldc
- The two halves of the eurozone are locked in a broken marriage October 30, 2011via telegraph.feedsportal.com “The euro is the engine of destruction” – why the North/South divide in Europe will be the cause of its ultimate demise (but not just yet!!) […]coulldc
- Bossi Italian Women & the Euro!! October 27, 2011via annacoulling.com Wrote this post at the crack of dawn this morning since when eurusd has broken above 1.41 and heading towards 1.42 on back of much better than expected data from the US. So many commentators have written off the US but be prepared for a dramatic reversal, albeit one surrounded by massive volatility. […]coulldc
- EURO Doom Mongering Persists October 18, 2011There is no backing down from ‘this’ persistent EUR decline. The market risk premium that was aggressively applied last week feels in danger of giving it all up and then some. Sentiment remains vulnerable allowing event risk to dominate on a disappointing of potential ‘under delivery’ at the Brussels Summit this weekend. Overnight brought a […]coulldc
- Geithner Plan for Europe is last chance to avoid global catastrophe October 18, 2011via telegraph.feedsportal.com Euro project was a daft idea in the first place. No monetary union has ever succeeded without political union. However, a weaker euro would at least help the Club Med countries & Germany exports. […]coulldc
- Barroso proposes penalties for rogue bankers October 17, 2011via telegraph.feedsportal.com What about rogue politicians – Barroso is particularly repellent – ex Maoist – a traitor to his original beliefs & the people of Europe. […]coulldc
Euro vs Dollar pages
Copyright © 2012 All Rights Reserved