What’s Up, What’s Down: Yen and Dollar Take Center Stage
Comments for Friday, May 7, 2010
Looking Ahead to Today by Reflecting Back at Thursday’s Price Action
CURRENCIES:
Higher to sharply higher closes Thursday for the Japanese Yen and dollar index while lower to sharply lower for the Canadian and Aussie Dollar along with the Euro Fx, Swiss Franc and British Pound again. The euro and franc continue to be in downtrends overall with euro making a new CONTRACT LOW AND CLOSE while the franc made its lowest low since May. The yen rallied sharply higher making its highest high since last December and highest close since March 3rd giving me a BUY SIGNAL like it or not! Of course the yen just made a double bottom earlier in the week. The Canadian Dollar settled sharply lower again with its lowest low and close since February but now in a support area. The pound settled lower for the 5th consecutive trading session with its lowest low and close since the end of March again while the Aussie Dollar also settled lower again with its lowest low and close since the end of March. Once again, conversely, the dollar made a new CONTRACT HIGH AND CLOSE rallying sharply along with the yen as mentioned above.
Of course, with Greece’s financial problems all over the news followed by problems in Spain, Portugal and Ireland fueling the rally in the Dollar and the downtrend in the euro, there could easily be sharp corrections at any time.
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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.
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.
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