What’s up, What’s Down: Currencies Turning Up?

Comments for Monday, January 11, 2010

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


Higher closes last Friday for the Canadian and Aussie dollar, Japanese yen, Euro Fx, Swiss franc and British pound while lower for the dollar index. The currencies are starting to turn back up while the dollar, conversely, lower. The euro and franc have been falling overall since Dec. 3rd but now are close to a buy signals due to recent rallies. The yen made a new recent low before rallying to settle higher in reversal type action but still looks the weakest of all the currencies. The Canadian dollar made its highest high and close since the middle of October working higher since breaking out of its trading range. The pound also settled higher now forming a possible bottom formation while the Aussie dollar had its best close in a month now at the top of its last resistance area as seen below ending my sell signal and close to a buy. The dollar index settled lower making lower highs since December 22nd and now close to a sell signal. There’s not much support down to the 7700 level basis the March contract.

Euro Chart

Japanese yen Chart


Export Inspections today.  Be aware several important grain reports come out on Tuesday that could have a huge bearing on what the gains will do for a while. Higher for corn, oats, Minneapolis, Kansas City and Chicago wheat, mixed for soymeal while lower for rough rice, soybeans and soyoil. All of the wheat still look higher with resistance at the 575 level but all making new recent highs and closes. Corn made its highest close since last June continuing to lead the way while still managing to stay within the 375-425 trading range(Dec.) since October no matter what the fundamental news has been. Rice settled lower with 14500(Mar.) the key price level to hold. Resistance is around 15500. Oats closed lower still in an up-trend needing to close over 280(Mar.) but also in a BULL TRIANGLE. The bean complex closed lower with the beans, meal and oil unable to break through their respective resistance theirs.

Corn Chart


Higher for lean hogs and feeder cattle while

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.