Euro vs Dollar - EUR/USD Daily Candle Chart 4th August 2009
Yesterday’s wide spread up bar on the euro vs dollar finally delivered the much awaited breakout from the last 2 months of sideways consolidation which was characterized by a frenzy of Euro buying. Needless to say in this morning’s London trading session the currency pair has paused for breath as it now awaits the ECB interest rate decision and statement on Thursday. With such a strong platform now providing a support it is difficult to imagine anything other than a continuation of yesterday’s move upwards and in the short term my initial target for the euro vs dollar is an attack on the next resistance level which now sits above the 1.46 to 1.48 price region and should this be breached then we could well see a return to the 1.50 level and above in the medium term. The resistance level outlined above should not be underestimated having been created over a period of 14 weeks during the latter part of 2007 and early 2008 and will therefore require significant force to break through.
With little in the way of fundamental news on the economic calendar for either the Euro or the US Dollar until tomorrow, the currency market will now be taking their lead from the equity markets and in particular the S&P500 which yesterday broke through the 1000 price level. All the fundamental news is covered on the main Eurodollar site.
