What’s Up, What’s Down: Gold Futures Up, Greenback Down

Comments for Tuesday, October 20, 2009

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


Higher closes yesterday for the British pound, Euro Fx, Swiss franc, British pound, Japanese yen, Aussie and Canadian dollar along with the Japanese yen while lower for the dollar index. The euro made a new CONTRACT HIGH CLOSE while the franc had its highest close since July ’08.  The yen, like the rest of the currencies, settled higher still giving me a sell signal while forming an even larger potential sell signal while, at the same time, still in a long-term up-trend. Followed through lower form Thursday’s sell signal. The Canadian dollar also had a weak close but its up-trend is still in tact. Unfortunately though, it has little support down to the 9400 area basis the December contract. The pound closed sharply higher again off its sharply higher close on Thursday but needing to close over 16500 at this time to give me a buy signal. The Aussie dollar made another new recent high but closed lower in reversal type action. However, this is one strong currency. Finally, the dollar index settled higher but still in a strong down-trend overall.

Euro Chart

Japanese Chart


Higher to sharply higher closes Monday for copper, gold, silver and platinum. All of the metals are still in up-trends with copper closing sharply higher breaking out of a BULL PENNANT to it highest close since September ’08. Now copper is at the upper end of a trading range going back to early August. Silver and gold closed higher again poised to move higher from their present consolidation areas. Platinum also closed higher holding up well overall and also acts like it will break out of its present consolidation area. Friday’s action could be important if there is a good follow through to the downside!

Copper 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.

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.