USD EUR Futures Chart - 13th March 2009

With the USD/EUR currency future once again failing to penetrate the 0.78 region, the contract now look set to retrace further from the high of last week, with prices falling below both the 14 and 40 day moving averages. With a bearish sentiment to the daily chart, we will need to see some strong signals in order to see a reversal in the short term, and any confirmed breakout higher will need to clear this resistance significantly for the bullish tone to be re-instated. A move through the support line at 0.77 could see a further fall, possibly as low as 0.75.

USD/GBP - Currency Futures Daily Candle Chart

Following the sharp rally on Monday with the wide spread up bar in the usd/gbp currency future, this failed to follow through during the remainder of the week, with each subsequent day moving off the high of Monday. However it is interesting to note than none of these candles have formed wide spread bars, suggesting that any move lower may only be temporary and simply a reaction to Monday’s strong move upwards. In additon the last three weeks have seen the pair bounce off the 9 day moving average adding to the view that this is a temporary pullback before moving higher in the medium term with higher highs and higher lows. The previous high at 0.7350 will come into play shortly, and a move through this area will confirm the move higher.