What’s Up, What’s Down: Strength in the Canadian Dollar; Natural Gas in a Bear Triangle
Comments for Tuesday, January 19, 2010
Looking Ahead to Today by Reflecting Back at Friday’s Price Action
CURRENCIES:
Higher close last week for the Japanese yen and dollar index while lower for the British pound, Euro Fx, Canadian dollar, Aussie dollar and Japanese yen and Swiss franc. The euro and franc had a decent selloff and are now back in a support area hurt by today’s action. The yen closed higher still in a short-term uptrend so far. The Canadian dollar closed lower but still is in a strong up-trend. The pound closed lower while at the top end of a resistance area looking higher at least in the short term while the Aussie dollar also settled lower still in an up-trend consolidating over the last week. The dollar index higher this time ending its streak of closing lower to 5 trading sessions with its next good support area around the 7600 area. I hold Buy Signals for the Pound, Canadian dollar, Euro and Swiss; Sell Signal for the US Dollar index. Please feel free to contact me for details.
ENERGIES:
Higher for natural gas but lower for the rbob along with crude and heating oil. The crude, heat and rbob are still in uptrends but have been hurt by recent action and now are actually near potential sell signals. The rbob is in the middle of a good support area but the crude and heat are at the lower end. All three have been selling off since its reversal type action on the 11th of January. Gas is in a BEAR TRIANGLE acting like it’s topping out. While in a strong resistance area and should work lower with 520 basis the February contract my objective at this time.
FINANCIALS:
Higher for the notes and bonds Friday while unchanged for the Eurodollars again. The Eurodollars made new contract high closes on Friday and Monday but no changes technically. The Eurodollar continues to be in an up-trend overall while the bonds made a new recent high close and the notes a new recent high and close. All of the financials look to continue higher but the notes are in resistance area at the present time.
For a free download of “25 proven Strategies for Trading Options on Futures,” click: https://www.zaner.com/3.0/ljs1.asp
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.