What’s Up, What’s Down: Has the Canadian Dollar Formed a Bottom?
Comments for Friday, February 12, 2010
Looking Ahead to Today by Reflecting Back at Thursday’s Price Action
CURRENCIES:
Higher closes Thursday for the Canadian and Aussie Dollar along with the dollar index while lower for the Euro Fx, Swiss Franc, British Pound and Japanese Yen but no changes technically. The euro and franc continue to be in down-trends but did break out of bear pennants higher on Tuesday meaning retracement rallies could be coming soon. The yen settled lower for the fourth trading session in a row causing a failed bull pennant but still in a short term uptrend. The Canadian Dollar closed higher again now forming a potential bottom while short-term in a down-trend and long term in a sideways market since October. The pound settled down near its session’s lows after falling sharply from its highs. This is a very bearish looking market needing to hold the 15600 area. The Aussie Dollar closed slightly higher still in down-trending market overall. The dollar closed higher still in a BULL PENNANT meaning it should continue trending higher.
INDICES:
Higher closes yesterday for the cash and Dow futures along with the S&P and Nasdaq but no changes technically again. All of the indices continue to look lower overall while now in their respective resistance areas.
The Presidents’ Day early closing and holiday trading hours schedule, for February 12-15, is posted on my website. Click or copy/pasting to your browser: https://www.zaner.com/3.0/market_information/hot_topics.asp.
Read 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.