What’s Up, What’s Down: Higher Close for Dollar Index

Comments for Wednesday, November 18, 2009

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


Higher closes Tuesday for the U.S. Dollar index while, conversely, lower for the British pound, Canadian and Aussie dollar, Euro fx, Swiss franc and Japanese yen. The euro and franc continue to be in long-term up-trends with the latter looking stronger than the former but both in choppy action at this time. The yen made a new recent higher before selling off to close lower in reversal type action but still should test its higher sooner than later. The Canadian dollar also settled lower still in an uptrend overall with support under 9400 basis the December contract but needing to close over 9600 to help verify a continuation of its move higher. The pound and Aussie dollar also settled lower but are still in strong uptrends. The dollar finally had a strong close but continues to look very bearish overall.


Higher settlement yesterday for the notes and bonds while lower for the eurodollars. The notes and bonds continue moving higher with the former making its highest close since April. The Eurodollar equaled its contract high before settling slightly lower. I hold Buy Signals for Notes and Bonds.


Higher closes for soybeans, soymeal, soyoil, Minneapolis, Kansas city and Chicago wheat while lower for rough rice, corn and oats. It looks like most of today’s action was from spread trading with all of the wheat (buy signals on Monday) making new recent highs and closes while corn settled unchanged to lower. Rice closed lower now in its last resistance with its KEY REVERSAL from last Wednesday still in tact but being threatened by a long-term up-trend. Oats also settled lower but continuing its overall obvious up-trend. The bean complex also closed higher again off spread trading this time with beans finally giving me a BUY SIGNAL and meal still close. I hold Buy Signals on all the Wheat, Corn and Oats.

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.