Pounds To Dollars Candle Chart - January 29th 2009

Pounds To Dollars Candle Chart - January 29th 2009

Yesterday we saw a small doji candle formed for the pounds to dollars pair,  following the FOMC and FED Funds Rate news yesterday evening. Despite this, the short term trend is still upwards and if you are scalping or intra day trading then the strategy is to try small long positions, with stops below at around 1.3750 or deeper. The key point will come when the pair reach the resistance level at 1.440o and above. If this is breached then expect a significant move higher. The candle yesterday crossed the 9 day moving average but not the 14 day, so not a strong signal, but a signal nevertheless. From the shape of the candle pattern, this move could be rolling over. As always we have to wait and see for any confirmation signals later today. The major fundamental news is being released in the US this afternoon and details can be found by following the link to the euro to dollar site. This morning the Nationwide released it’s HPI ( House Price Index )  with figures coming in at -1.3% against a forecast of  -1.8%, so beating analysts expectations. This is a leading indicator of the housing market ( if any were needed!) and is based on the change in selling prices for homes backed by a Nationwide mortgage, so the figures were not as bad as expected.

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