What’s Up, What’s Down: Gold vs Dollar
Comments for Thursday, January 7, 2010
Looking Ahead to Today by Reflecting Back at Wednesday’s Price Action
METALS:
Higher to sharply higher settlements on Wednesday for copper, gold, silver and platinum. Copper continues to look higher with another new recent high and close since 2008 while platinum gapped to a new CONTRACT HIGH AND CLOSE also again. Gold made its highest high and close in two weeks and silver in three giving me a BUY SIGNAL. The bottom line is all of the metals continue to be in long-term up-trends overall. They gave me a BUY SIGNAL on Monday but silver just missed one today even after a very strong close.
CURRENCIES:
Higher closes yesterday for the Canadian and Aussie dollar, Japanese yen, Euro Fx, Swiss franc, unchanged for the British pound while lower for the Japanese yen and dollar index. The euro and franc have been falling overall since Dec. 3rd not affected technically by today’s action while the yen closed lower and has been dropping overall since August. The yen, however, shows no signs of turning around at this time. The Canadian dollar finally broke out of its sideways trading range since early November on Tuesday following through today with another strong close. The pound settled unchanged still in its last support area with resistance over 16200. The pound has been in a down-trend ever since its DOUBLE TOP in the middle of November as shown below. The Aussie dollar closed higher again with a nice following through from Tuesday’s close and now at the upper end of a strong resistance area. Overall, the Aussie dollar hasn’t really gone anywhere since early October even though it has a 500 point range between its highs and lows but did make a new recent high and close in narrow trading while in a good-size resistance area. The dollar index settled higher this time rallying nicely off its lows which avoided a sell signal for me. Also there’s not much support down to the 7700 level basis the March contract.
See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.
Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.
The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.