What’s Up, What’s Down: Euro Makes New Contract Low

Comments for Friday, June 4, 2010

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


Higher closes yesterday for the Aussie Dollar, Swiss Franc and dollar index while lower for the Canadian Dollar, British Pound, Japanese Yen, Euro Fx and British Pound. The euro made a new CONTRACT LOW CLOSE while the franc settled slightly higher both still in downtrends overall. The yen closed lower while making lower highs six out of the last seven trading sessions. I’ve removed my buy signal but the yen is now at the beginning of a support area. The Canadian Dollar made higher highs six consecutive trading sessions but settled lower for the first time during this stretch in reversal type action. This still should still be considered retracement type action unless it closes over 9600 basis the June contract. The pound closed slightly lower still in a long-term downtrend with little resistance up to 15000 basis the June contract. The Aussie Dollar settled higher now in a BULL PENNANT with its long-term downtrend still intact. The dollar settled higher while still in a BULL TRIANGLE and a strong uptrend.

Euro Chart

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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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