What’s Up, What’s Down: Spotlight on Currencies

Comments for April 28, 2011

Looking ahead to Thursday by reflecting back on Wednesday’s trading

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors.

SPOTLIGHT ON CURRENCY FUTURES. BAD NEWS FOR THE US DOLLAR

CURRENCIES: 4/28/11: Higher for the Euro Fx, Aussie and Canadian Dollar along with the Swiss Franc and British Pound while lower for the Japanese Yen and dollar index.. All of the currencies have been in an uptrend except for the yen and even the yen has been rallying lately. However, after making its highest high since March 28th again, the yen broke sharply settling lower in reversal type action still unable to get through its present resistance area. As shown below the yen’s trading range was large. Meanwhile, the euro, franc, pound and Aussie Dollar made  NEW CONTACT HIGHS AND CLOSES while the dollar plummeted to a new CONTRACT LOW AND CLOSE again. It  looks like the Fed and Bernanke didn’t say anything to change the trend in the currencies. BUY SIGNALS FOR THE EURO FX, SWISS FRANC, CANADIAN DOLLAR AND AUSSIE DOLLAR. SELL SIGNALS FOR THE JAPANESE YEN AND DOLLAR INDEX. CALL FOR DETAILS!

In early morning trading, my Futures HeatMap shows the Metals sector up 1.99% for the day; making it the strongest of the eight groups comprising the Futures HeatMap. Metals is led by a very strong rally in Silver (up 5.30% from yesterday’s close. View the color-coded HeatMap at https://www.markethead.com/2.0.

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 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 ralexander@zaner.com or call toll-free (888) 281-4158.

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors. The information in this Report and the opinions expressed are subject to change without notice. All known news and events have already been factored into the price of the underlying commodities discussed.