What’s Up, What’s Down: Spotlight on Currencies
omments for August 8, 2011
Looking ahead to Monday by reflecting back on Friday’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
FOCUS ON CURRENCIES
FUTURES AND OPTIONS TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. FUTURES AND OPTIONS TRADING IS NOT SUITABLE FOR ALL INVESTORS.
CURRENCIES: 8/8/11 Higher closes Friday for the Swiss Franc, Japanese Yen, British Pound and Euro Fx while lower for the Canadian Dollar and Aussie Dollar along with the Dollar Index. BANK INTERVENTION FOR THE SWISS AND YEN earlier in the week initially caused sharp drops in both currencies. MY OPINION BANK INTERVENTION RARELY WORKS WHEREBY YOU CAN FADE THE ACTION. OF COURSE, TIMING IS EVERYTHING WHEN ENTERING THE MARKETS. The euro and franc both settled higher with the latter making a new CONTRACT HIGH AND CLOSE with the swiss/ euro spreading still working overall in favor the franc. I still remain on the sidelines for the euro which has been making lower highs since the beginning of May while basically trending sideways except for a one day blip in July as seen below. The yen settled higher in not much of a bounce so far after Thursday’s sharply lower close. Bouncing off a strong support area has me keeping my yen buy signal in place at this time. On the other hand, Canada’s close below 182(lowest close since late June) has given me a SELL SIGNAL. I just missed a sell signal for the Aussie Dollar which is now in a critical place to hold and has been dropping since making a DOUBLE TOP at contract highs. In place which so far ended its uptrend, at least for now .The pound closed higher remaining in an important resistance area still looking higher overall. The dollar made its high since July 19th before closing lower in reversal type action but has strong resistance all the way up to the 7650 area. I can’t help believing the dollar will continue work higher while the Dow and energies move lower in at least the near term. BUY SIGNALS FOR THE SWISS FRANC AND JAPANESE YEN. SELL SIGNAL FOR THE CANADIAN DOLLAR. CALL FOR DETAILS!
“A good plan is like a roadmap; it shows the final destination and usually the best way to get there” (H. Stanley Judd). Traders need a trading plan too. Download my TRADING PLAN TEMPLATE by clicking this link or copying and pasting it into your browser:
https://www.zaner.com/3.0/ljstradingplantemplate.asp
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.