Euro Dollar Exchange Rate Forecast: Worth buying a dip to 1.3850-60

The latest technical euro dollar exchange rate forecast from the team at FuturesTechs confirms this week is likely to belong to the euro.

As shown in our earlier report on the GBP-EUR the euro is looking strong today and taking chunks out of all those G10 majors it comes up against.

The short-term forecast for the euro dollar confirms it would be prudent to stay friends with the shared currency.

Today's euro dollar exchange rate forecast from Robin Harrington at FuturesTechs provides further context to the pro-EUR scenario:

• Short Term Trend: Bullish
• Medium Trend: Bullish
• Candlestick Chart says: Last week was the 5th green week in a row and saw off downtrend resistance. We are now signalled to head to 1.4248/1.4300. The only worry is the Shooting Star on the daily formed by Friday’s turnaround on the numbers. TUESDAY UPDATE: Yesterday was very quiet and overnight it’s been even quieter. It might be worth buying a dip to 1.3850-60 but I’m not that inspired to be honest.
• Profile Charts say: 1.3860 already building as a new perception of “Value”. Single Prints down to 1.3820 with another vacuum down to 1.3775 provide short term supports.
• Summary: Looks pretty bullish going into this new week and I’d be looking to buy dips unless we drop back through 1.3796.

Markets kept in check by disappointing trade data

It has been a slow start to the new week for risk currencies and equities courtesy of some disappointing news out of China.

Below is the TradeNext assessment of the marketplace on Monday morning:

"Very disappointing Chinese data weighed on the Australian Dollar but the rest of the Asian session was pretty slow, the greenback holding on to most of it’s gains from the better than expected data on Friday.

"Thankfully Ukraine’s on-going issues have not bubbled over at the weekend but some of the headlines coming out are less than positive, this also weighed on Stocks. With the Nikkei down just over 1% the FTSE is set to open lower, there’s support at the 50 day moving average around 6712 if we break this look to test 6700.

"There will be stops below this but traders will look at this as a buying opportunity, gold could be one to watch with a lot of fast money playing with the global risk hedge.

"A very quiet day for economic releases most players will be sitting on the side-lines watching what happens with the Russian forces as it looks to be make or break this week as the rest of the world loses patience with Russia.

"With one eye on the news wires traders will fade the moves today; buy weakness and sell strength, with the current political and economic climate perhaps more of the latter. One new thing to watch is the Malaysian Air crash while too early to jump to conclusions there will be a lot of interested observers."