My suggestion for today, is much the same as yesterday, in other word small short positions with a stop loss above the 0.9500 region. The bearish sentiment now seems to be back in place with a failed attempt to rally yesterday in the pair, leaving us with a down day doji. More importantly, prices closed below both the 9 day and 14 day moving averages and we should now see a move back to retest the 0.8750 region. As you know my long term view is bearish but I try not to let this colour my judgement on an intra day basis! We are still trading in a relatively congested region so I would advise small positions and tight stops for your trading for today.

On the $undamental newsnt I have covered both the euro and UK pound on two of my other sites – if you would like to view these please just follow the links to the euro to dollar for the euro, and for the UK pound, the pounds to dollars site.

The short term outlook is bearish, the medium to long term is also bearish.