Yesterday’s candle added to the string of consecutive down days that we have seen in the last 2 weeks but as with last Friday’s candle the closing price finished just above the 40 moving average and with the low of the day bouncing off the 0.9030 region once again.  The bearish tone has been confirmed in early trading this morning once again with current prices now well below all three moving averages as we start to approach the significant resistance in the 0.89 to 0.90 region immediately below.  Any longer term bear moves will need to push through this region if we are to see any sustained move further into the 80s area.

The only items of $undamental newsthe economic calendar today for the $uros to poundsr have already been released and saw manufacturing production in the UK come in significantly better than expected at -0.9% against a forecast of -1.4% and industrial production improve slightly to -1%.  I have covered these in more detail on my pounds to dollars site.

My trading suggestion for today is continue to find small short positions (as per my suggestions of the past few days) in the 15 and 30 min chart but bearing in mind that none may emerge given the shortened trading week and relatively thin volumes as traders close out positions in advance of the forthcoming national holiday.   As usual always look to enter any short trade on an uptick and look for shooting stars and doji candles for your entry points and as always using very tight stops.

You can keep up to date with all the latest currency news, live currency charts and fundamental news by simply following the appropriate links, and if you are looking for a good ECN broker I have provided more details here.