What’s Up, What’s Down: Currency Market in Today’s Spotlight

Comments for Friday, September 17, 2010

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

Futures and options trading is speculative in nature and involves substantial risk of loss.  Futures and options trading is not suitable for all investors.


Higher closes yesterday for the British Pound, Euro Fx, Aussie Dollar and Canadian Dollar while lower for the Swiss Franc, Japanese Yen, Aussie Dollar and dollar index. Strong unwinding of the Swiss/ euro spreading with the euro higher and the franc lower which was long overdue for a correction. However, the trends in both currencies remainder up.

The yen closed lower again due to bank intervention in Japan forced by China’s attempt to keep the yen strong hurting its exports Wednesday evening but, In my experience, currency intervention almost never works. So please call me if you are interested in my plan of attack to take advantage what history tells me will be a rally back in the yen! Still, the yen was technically hurt by the action over the last couple of trading sessions and still needs to hold the 11600 area.

The Canadian Dollar settled higher by one tick and is still in a BULL FLAG continuing its sideways pattern since the beginning of May. However, it is now at the higher end of that trading range. The pound made its best close since August 11th this time with little resistance above and did settle over 15600 with the next objective now in the 15800 area basis the December contract.

The Aussie Dollar closed lower but is still in a BULL PENNANT looking very bullish overall while the dollar closed lower this time but is in a BEAR PENNANT and should test its recent lows. BUY SIGNALS FOR THE EURO FX, SWISS FRANC, AUSSIE DOLLAR, AND JAPANESE YEN. SELL SIGNALS FOR BRITISH POUND AND DOLLAR INDEX. CALL FOR DETAILS!

Euro Dollar Chart

Japanese Yen Chart

Canadian Dollar Chart

British Pound Chart

Is open-outcry going away? Do you know exactly how much futures trading is executed on electronic platforms like Globex?  Download my Trading Volume report at https://www.zaner.com/3.0/ralexVolume.asp  (or copy & paste this link into your browser).

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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