What’s Up, What’s Down: Higher Gold Futures; Weak Greenback

Comments for Tuesday, July 21, 2009

Looking Ahead to Tuesday by Reflecting Back on Monday’s Price Action

CURRENCIES:

Higher settlements on Monday for the Swiss franc, Canadian dollar, Aussie dollar, British pound, euro fx and Japanese yen while lower for the dollar index. All of the currencies are back to resuming their respective uptrends while the dollar its downtrend. The euro and franc broke out of their consolidation patterns giving me buy signals with the former making a new recent high and close. The Canadian dollar’ also made a new recent high and close but now in a resistance area, but still should work higher overall. The yen made a recent low before rallying to settle slightly higher still needing to hold the 10600 (Sept.) area. The pound and the Aussie dollar also had strong closes with the former making a new recent high and close while the latter had its second highest close of the move. The dollar, conversely, made its second lowest close of the move. Buy Signals for the Euro, Swiss, Yen and Canadian dollar; Sell Signal for the U.S. Dollar Index.

Euro Chart

Swiss Franc Chart

FINANCIALS:

Higher closes yesterday for the eurodollar, notes and bonds. The eurodollar made a new contract high and close again while the bonds and notes made new recent lows before rallying to settle higher. Both have held their respective support areas so far but have made lower highs the last five trading sessions. Buy Signals for both Bonds and Notes.

10-Year T-Note Chart1

10-Year T-Note Chart2

METALS:

Higher closes copper, gold, silver and platinum. Copper made its highest high and close since early October back confirming its strong long term. Gold settled sharply higher reversing my sell signal to a buy while silver and platinum, although closing higher again are still in downtrends overall with the latter now in a resistance area. Buy Signal for Copper; Sell Signals for Gold, Silver, and Platinum.

Gold 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.