What’s Up, What’s Down: Crude Higher, Dollar Dips Lower

Comments for Thursday, August 13, 2009

Looking Ahead to Today By Reflecting Back at Wednesday’s Price Action


Higher closes on Wednesday for the British pound, Euro fx, Swiss franc along with the Aussie and Canadian dollar along while lower for dollar index. The euro had a failed BEAR PENNANT while the franc had a failed BEAR FLAG meaning both should work higher in at least the near term. The yen had a lower close after a strong up-day on Tuesday bouncing off a DOWNTREND LINE and a resistance area while still in a downtrend overall. The Canadian dollar had its lowest low since July 22nd again but rallied to settle higher now in a minor resistance area looking toppy with support around the 9000 area. The pound settled slightly higher holding at the upper end of a very good support area (16500 down to 16300) basis the September contract. The Aussie dollar closed higher and, more importantly, rallied sharply off its session’s lows now acting like it will soon test its highs. The dollar settled higher again still in a downtrend overall but attempting to form a bottom with strong resistance over 8000. Buy Signals for the Euro, Swiss and Canadian dollar; Sell Signal for the Yen and U.S. Dollar Index.

British Chart

Australian Chart


EIA Gas Storage report today:  Higher settlements yesterday for crude oil but lower for heating oil, rbob and natural gas. Crude, heat and the rbob look ready to take out their recent highs while the gas continues to struggle in a support area at this time. Buy Signals for Crude, RBOB, Heating Oil and Natural Gas.

Crude oil 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.