What’s Up, What’s Down: New Sell Signal for the Pound
Comments for Monday, February 1, 2010
Looking Ahead to Today by Reflecting Back at Friday’s Price Action
CURRENCIES:
Higher close on Friday for the dollar index while lower for the Japanese Yen, Canadian and Aussie Dollar, Euro Fx, Swiss Franc and British Pound. All of the currencies made new recent lows and closes except for the Japanese yen. Conversely, the dollar made a new recent high and close. The euro and franc continue their downtrends while the British Pound gave me a SELL SIGNAL. The yen as good resistance above 11200 and support below 11000 but hasn’t given me a signal at this time. The Canadian dollar closed lower also needing to hold the 9300 area while trading near the lower range of a sideways going back to the beginning of October. The Aussie dollar closed lower still at the lower end of a sideways pattern going back to late October. The dollar index had another strong close continuing its uptrend at this time.
GRAINS:
Higher settlements for rough rice and soyoil while lower for corn, oats, Minneapolis, Kansas City and Chicago wheat along with soybeans and soymeal. All of the wheat continue to be in down-trends making new recent lows and closes but also now in support areas at this time. Corn also made a new recent low and close continuing work towards the 350 area where its support(Mar. contract) starts and goes down to 425. Everyone who reads a chart can see clearly see this support range. Traditionally the grains have fill around 90% of their gaps and the December corn contract has one at 392 1/2. Rice settled lower again with its weak attempt at bottoming fading away at this time. But is attempting to form a bottom at this time. Oats settled slightly lower looking very weak overall but has very little resistance up to 255 basis the March contract and has held a support area from 220 to 230 so far making this a difficult market to take a position in at this time though its overall trend has been sharply lower since January 11th. The beans and meal made new recent lows and closes while the oil closed slightly higher and oil lower. Beans and meal continue to hold their respective support areas so far.
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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.