What’s Up, What’s Down: Is the Greenback Turning Down?

Comments for Tuesday, February 2, 2010

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


Higher closes yesterday for the Canadian and Aussie Dollar, Euro Fx and Swiss Franc while lower for the Japanese Yen, British Pound and dollar index. The euro made a new recent low before closing higher in reversal type action while the franc just closed higher. Both are still in downtrends. The yen settled lower needing to hold the 11100 area while have good resistance above 11200.. The Canadian Dollar also made a new recent low before settling higher in reversal type action needing to hold the 9300 area while trading near the lower end of the range of a sideways going back to the beginning of October. The Aussie dollar closed higher this time also making a new recent low first in reversal type action. Conversely, the dollar index closed lower after making a new recent high. What all this means is that the dollar may be setting up to head lower in a least the near term. The rest of this week’s action should tell the story!

Dollar Chart


Sharply higher closes yesterday for crude and heating oil along with the rbob and natural gas but no changes technically. The crude, heat and rbob have room for a good retracement with their respective resistance areas higher up because of their recent sharp drops. Gas, however, is now in strong looking resistance area. All three have been selling off since their reversal type action on January 11th.

Crude Oil Chart

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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.

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