What’s Up, What’s Down: Japanese Yen Down Along with Euro and Pound
Comments for Monday, July 7
Looking Ahead to Today By Reflecting back at Thursday’s price action)
Reports Today: EXPORT INSPECTIONS. CROP PROGRESS. Higher for oats, Minneapolis, Kansas City and Chicago wheat, soybeans and soymeal, while lower for corn, rough rice and bean oil. All of wheat still continue to look lower overall with Minneapolis having good support around the 900 area basis the September contract. Corn still looks higher overall after today’s lower close but a long weekend could be tricky. Oats made a new contract high and close again. Rough rice settled lower and is in bear trading between 180 and 200. New contract highs and closes beans and meal while oil continues to look higher also.
Sharply lower to lower closes for the Japanese Yen, British Pound, Swiss Franc, Euro Fx, Canadian Dollar and Aussie Dollar while sharply higher for the dollar index. The euro and franc continues to look higher at this time while the yen was hurt by today’s action but still has a buy signal although a weak one after having a failed bull flag. The Canadian Dollar settled lower as it looks like its retracement rally might be over. The Aussie Dollar also closed lower but is now in a bull pennant. The pound closed sharply lower but still looks higher overall. The dollar index settled sharply higher but still looks very weak overall.
Lower closes for live cattle and feeder cattle along with lean hogs and pork bellies. Cattle are in a bear flag and should continue back down. Feeders need to hold 11075 amd have been holding up well against the bull market in corn. Long term feeders are in a critical area and must be watched closing for a breakout in either direction. Hogs also closed lower in a very weak market but does have a large gap at 7235 basis the August contract. Bellies gapped to a new contract low and close.
Lower for for copper, gold, silver and platinum. All metal longs should take profits as soon as possible and stand aside at this time. It feels like a sharp correction will be here soon!
LUMBER: Lumber gapped and closed strong trying to bottom in what is still a bear market. However it did have a failed bear triangle which could lead to a sharp rally.
ORANGE JUICE: Orange juice closed higher and is in a bull flag at this time looking strong.
COCOA: Cocoa settled sharply lower now making a failed bull pennant with little support down to 2800.
COTTON: Cotton close lower for the 45h trading session in a row. There is support around the 7500 area however basis the December contract.
COFFEE: Coffee settled lower with little support down to 14000 basis the September contract. Taking profits if it breaks 15000.
SUGAR: Sugar made its high’s high since the middle of March before settling lower. This normally is minor reversal type action but after its recent rally I would be careful. There is little support down to the 1300 area.
Higher closes for the eurodollars and notes while lower for the bonds. All of the financials have been retracing higher now very close to buy signals.
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. Email Rick at firstname.lastname@example.org or call toll-free (888) 281-4158.