What’s Up, What’s Down: Currencies in Uptrends, Bear Pennant for Gold

Comments for Tuesday, September 29, 2009

Looking Ahead to Today by Reflecting Back at Monday’s Price Action

CURRENCIES:

Higher closes on Monday for the U.S. dollar index, Japanese yen, Canadian and Aussie dollar while lower for the Euro fx, Swiss franc and British pound. All of the currencies still are in uptrends though there are potential topping formations in the euro and franc with support under 144000 for the former and 9500 for the latter. The yen went sharply higher (highest high since January) overnight then spent the rest of the day drifting lower to only settle 17 points higher but still its best close since February. The Canadian dollar closed lower again trading between 9000 and 9400 since July and was gradually moving higher until today but now is back in the middle of its range basis the December contract. The Aussie dollar closed lower also but continues to look strong overall. The Dollar Index settled higher but first needs to close over 7734 before it looks like a possible turnaround.

Japanese Yen Chart

METALS:

Higher closes yesterday  for gold, silver and platinum while lower for copper. All of the metals are still in up-trends but with potential topping formations with copper already giving me a sell signal last week. All had nice rallies off their session’s lows in light volume across the board today. Gold is now in a small BEAR PENNANT.

Gold Chart

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.

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.