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Euros To Pounds – February 13th 2009

Yesterday’s move back up into the resistance at 0.91 was much as I expected, and as you can see from the last three days, the body of each candle is narrowing on each. This combined with the increasing upper wick on each would suggest that we are expecting this short term rally to come to an end and possibly roll over today. The closing price was just above the 14 day moving average, but with all the averages now starting to cross over again, the short term trading picture is not clear cut. My view longer term is bearish as I believe the euro is over bought against the UK pound. Shorter term is more difficult. For today I would suggest staying out until we have a clear signal which may be on Monday if we have a down bar today. I will ofcourse be updating the weekly chart over the weekend so this may give us some signals for the longer term.

On the $undamental newsnt there is virtually no data due for release today with all the focus on the G7 meeting in Rome.

The short term outlook is sideways, the medium and long term is bearish.