What’s Up, What’s Down: Spotlight on Currencies
Comments for December 1, 2011
Looking ahead to Thursday by reflecting back on Wednesday’s trading
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors
MIXED AND CONFUSING SIGNALS IN CURRENCY FUTURES
CURRENCIES 12/1/11: Higher closes yesterday for the Aussie dollar, Euro FX, Swiss Franc, Canadian dollar, Aussie dollar, British Pound and Japanese Yen while lower for the dollar index. After yesterday’s action it has become somewhat difficult for me to read the Canadian dollar, British Pound and Aussie dollar charts. The dollar settled lower for its third session in a row but now is in a support area still looking higher overall. The rest of the currencies closed higher with the yen in the middle of its trading range over the last month and could easily move in either direction at this time. There is strong resistance over 1300 which is hasn’t successfully penetrated so far. The euro and franc were little affected technically by Wednesday’s action but we still need to see how the credit easing affects them over the near term. Like the other currencies the pound and Aussie dollar settled higher making them a difficult call but could be, along with the Canadian dollar, forming a potential bottom. However, there long-trends are still lower. BUY SIGNAL FOR DOLLAR INDEX. SELL SIGNALS FOR THE EURO FX, SWISS FRANC, AUSSIE DOLLLAR, BRITISH POUND, CANADIAN DOLLAR AND JAPANESE YEN. CALL FOR DETAILS
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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. Email Rick at ralexander@zaner.com or call toll-free (888) 281-4158.
Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.