Euro Loses Ground, But Bullish Trend Continues
The Euro took a slight dip today, but remains up over 10% year to date. Yesterday's Fed interest rate cut sent the Dollar to a new all-time low versus the Euro, and today’s bears are likely just profit-taking from the overall bullish market.
Looking at the chart, we are still above both the 15- and 25-day moving averages. In fact, the moving averages are at 143 (15-day), and 142.5 (25-day), showing just how fast this is moving lately. In the slow stochastic indicator, we are approaching the 80 mark, but it's difficult to say if this will mean a reversal due to the strong overall trend. There is no resistance since we are making new highs (unless you want to consider yesterday’s close). However, the next level of support is around the 138 area which was reached last August.
One thing that will be of interest to both currency traders as well as stock index traders is the employment report that comes out tomorrow morning at 8:30 AM Eastern time. With the current prices in both currencies and stock indexes, this could have a major impact across several markets. With housing numbers continuing to move lower, Dollar bulls need a good number tomorrow.
Director of Education, Mike Tosaw
