What’s Up, What’s Down: Currency Market in Focus

Comments for Friday, July 8, 2010

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


Higher closes yesterday for the Euro Fx, Swiss Franc, Canadian Dollar and Aussie Dollar while lower for the Japanese Yen, British Pound and dollar index. The euro made its best high and close since May 11th settling higher for the 6th consecutive trading session while the franc made its highest close since January 27th. The yen settled lower but, more importantly, caused a failed bull pennant which should lead to a retracement lower from this area.

The Canadian Dollar had its best high and close in several days once again and seems to be attempting to form a large potential bottom but still keeping me neutral at this time. The pound settled slightly lower still working higher overall but trading in relatively calm sessions lately. While the Aussie Dollar made its highest high and close in two weeks getting close to a potential major buy signal. The dollar made its worst close since May 5th continuing to act like its starting a long-term downtrend. .BUY SIGNALS FOR THE BRITISH POUND, EURO FX, SWISS FANC AND JAPANESE YEN. SELL SIGNAL FOR THE DOLLAR INDEX. CALL FOR DETAILS!

US Dollar  Chart

Aussie Dollar  Chart


Higher to sharply higher closes Thursday for Minneapolis, Kansas City and Chicago wheat along with oats, rough rice, corn, soybeans, soymeal and soyoil. This turned out to be one heck of a day if you’re long especially after the grains couldn’t hold their rallies on Tuesday. This type of action is indicative of a possible end to the bear markets in the grain complex. Minneapolis, KC and Chicago wheat have now given me BUY SIGNALS all making their best highs and closes since last March.

Corn made its highest close since May 27th now at the upper end of a strong resistance area and very close to a buy signal. Rice settled higher but continues to be in a down-trend overall while oats continue to look toppy even after another higher close and a DOUBLE BOTTOM in place at 243 1/2 basis the December contract. The beans complex settled sharply higher with beans forming a large potential bottom at this time and meal making its best high and close since May 4th continuing its strong uptrend. Oil still is the weakest of the bean complex with strong resistance overhead at this time. BUY SIGNALS FOR MINNEAPOLIS, KANSAS CITY AND CHICAGO WHEAT ALONG WITH OATS AND SOYMEAL. SELL SIGNALS FOR SOYOIL AND ROUGH RICE. CALL FOR DETAILS!

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. 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.

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