What’s Up, What’s Down: All Major Currencies Look Bullish Against Dollar

Comments for Thursday May 14, 2009

CURRENCIES

Higher close on Wednesday for the Japanese Yen and dollar index while lower for the Euro Fx, Aussie dollar, British Pound, Swiss Franc and Canadian dollar. New recent highs for the euro and franc before settling lower but no changes technically. Both currencies are still in uptrends and should continue higher with little resistance overhead. The yen made a new recent high and close giving me a buy signal. The Canadian Dollar had its lowest low and close in 4 trading sessions and now needs to be watched closely although still in a uptrend overall.

The pound settled lower this time but is in a bull pennant while in an uptrend overall. The Aussie Dollar started higher but sold off sharply wrecking a bull flag to settle lower. Now it should have a correction probably down to the 7400 area to begin with. However, like most of the currencies at this time the trend is still up. Conversely, the dollar index made its lowest low and close since last December again before rallying to settle higher. However, the dollar is looking very bearish overall.  I continue to maintain Buy Signals for the Euro, Swiss Canadian & Aussie Dollar, Pound and Yen.

Japanese Yen Chart

Canadian dollar Chart

ENERGIES:

Higher closes yesterday for the rbob while lower settlements for crude and heating oil along with natural gas. All of the energies continue to look higher overall with the rbob taking out its triple top looking the most bullish of all the energies at this time. Natural gas made a new recent high before selling off and closing lower in reversal type action.

Natural gas T-Note Chart

RBOB Chart

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.