What’s Up, What’s Down: Lower for the Dollar Index

Comments for Tuesday, October 6, 2009

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


Higher settlements Monday for the euro Fx, Swiss franc, Japanese yen, Canadian and Aussie dollar and British pound while lower for the dollar index. All of the currencies still are in uptrends with the exception of the pound and there are also potential topping formations in the euro and franc with support under 144000 for the former and 9500 for the latter. The yen made a new recent high close while the Canadian dollar is now back at the higher end of a trading range between 9000 and 9400 dating back to July. The pound is in a BEAR TRIANGLE but the Aussie dollar acts like it will test its highs. The dollar closed lower again still forming a potential bottom while having strong resistance over the 7800 area. One more down day could really hurt the dollar’s potential for a turnaround.

British Pound Chart


Sharply higher close yesterday for natural gas while higher for crude oil and the rbob and lower for heating oil. In spite of recent rallies in the energies they’ve been making lower highs and lower lows overall keeping my sell signals still in place. However, this chart pattern looks like will be challenged. Natural gas had a sharp rally again giving me a huge BUY SIGNAL.

Natural Gas Chart

Crude Oil Chart

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.

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.