What’s Up, What’s Down: Dollar Slips

Comments for Thursday, August 27, 2009

Looking Ahead to Today By Reflecting Back at Wednesday’s Price Action


Higher settlements on Wednesday for the Japanese yen and dollar index while lower for the Euro fx, Swiss franc, Canadian and Aussie dollar along with the British pound. The euro and franc continue to hold support areas after settling lower. The yen closed higher still in a long term uptrend making higher highs and lows since early April. Normally the yen trails the other currencies in bull markets but has been holding up with a nice looking possible bullish formation which is generally not a good sign for the dollar. The Canadian dollar followed through closing over 100 points lower still in an uptrend as long as it doesn’t settle below 9000. The pound settled lower for the sixth trading session in a row finally giving me a SELL SIGNAL. The Aussie dollar also closed lower also but continues to look strong with good support under 8000. The dollar settled higher but is still in a downtrend. Technically bullish on the Euro, Swiss franc and Canadian dollar; bearish on the US Dollar Index.

British Pound Chart


Higher closes yesterday for the eurodollar, bonds and notes once again. Like a broken record the eurodollar continues to be in an uptrend making another new contract high and close. The bonds and notes also settled higher with the former making a new recent high and close and the latter closing in on a possible buy signal. I maintain technical Buy Signals for Bond and Note futures.

Treasury Note Chart

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.