What’s Up, What’s Down: Mixed Closes for Currency Futures
Comments for Tuesday, March 3, 2009
Looking Ahead to Today By Reflecting back at Monday’s price action
A bear market for foreign currencies means a Bull Market for the U.S. Dollar. Currency traders should not overlook the US Dollar Index futures contract traded at the ICE Futures-US exchange.
Higher closes yesterday for the Japanese and U.S. Dollar Index contracts while lower for the British Pound, Canadian and Aussie Dollar along with the Swiss Franc and Euro Fx. The euro and Swiss continue to look lower overall along with they yen with no changes technically. The Canadian Dollar made a new contract low close looking to continue its downtrend. The pound settled lower also gradually working lower overall. There is good resistance above 14500 basis the March contract. The Aussie Dollar also settled lower making its second lowest close since November also in a downtrend like the rest of the currencies but now below its support. The dollar closed strong again making a new contract high close as we expected would happen. I remain bearish on the Canadian Dollar and Japanese Yen and have specific Sell Signals.
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 email@example.com.