What’s Up, What’s Down: Spotlight on Currencies
Comments for August 2, 2011
Looking ahead to Tuesday by reflecting back on Monday’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
FRANC AND YEN MAKE ANOTHER CONTRACT HIGH
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: 8/2/11 Higher for the Swiss Franc and dollar index while lower for the Japanese Yen, British Pound, Euro Fx, Aussie and Canadian Dollar. 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. Swiss/ euro spreading has been what’s holding back the euro and today’s action actually looks like the beginning of a blow off phase with the spread widening further in one trading session than I can remember. The franc made another new CONTRACT HIGH AND CLOSE to bear this out. The yen had a large range making a new CONTRACT HIGH before settling lower in reversal type action while the Canadian Dollar closed down for its fourth session in a row now near a good support area under 104(Sept.). The pound also had a large range making its best high since the end of May before settling lower in reversal type action unable to completely penetrate its resistance and now near its support below 16200(Sept). The Aussie Dollar also closed lower with good support below 107 but still with a DOUBLE TOP at contract highs. The dollar settled higher this still looking very weak overall but making its best high in seven trading sessions. I feel the dollar will continue to rally from its present levels with the budget on the verge of being passed even though it’s been trending lower overall since last December. BUY SIGNALS FOR THE SWISS FRANC AND JAPANESE YEN ALONG WITH THE CANADIAN AND AUSSIE DOLLAR. SELL SIGNAL FOR THE BRITISH POUND. CALL FOR DETAILS!
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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.