What’s Up, What’s Down: Dollar Gains Against Pound
Comments for Thursday, April 9, 2009
Looking Ahead to Today By Reflecting back at Wednesday’s price action
CURRENCIES:
Higher closes yesterday for the Dollar Index and Japanese yen while lower for the Canadian dollar, British Pound, Euro Fx, Swiss Franc and Aussie dollar. The euro and franc continue to look lower but may both be in bull triangles which could end up turning these two currencies higher if they break out of these consolidation patterns to the upside.
The yen is a different story still looking very bearish even after today’s sharp rally off session’s lows even ruining a bear flag. Because of this the yen should have a retracement rally from here. The Canadian Dollar settled one tick lower messing up its bull flag but still forming a large possible bottom needing to close over 8200 basis the June contract. The pound also closed lower ruining its bull flag but in a potential bottoming formation.
The Aussie Dollar is in a bull pennant continuing to look very bullish overall while the dollar closed higher again bouncing off the beginning of a resistance area still looking lower overall. Buy Signals for the Canadian and Aussie Dollar. Sell Signal for the Dollar Index.
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.