Currency Futures Trading A Daily Review for Monday 1/25/10
Posted by: Richard Estrada // Category: Currency Futures Trading
The Currency Futures Market as a whole was little subdued today. Day Traders day trading currency futures found rather tight ranges in several markets, maybe due to both the FOMC meeting and State of the Union coming later in the week. So, what can we expect tomorrow in the currency futures market?
The March 2010 British Pound futures contract (see chart below) shows that the bulls were able to hold the line in the vicinity of the 25-day moving average (blue – 1.6117) and make a recover some loss ground. The question now is can the bulls push this market back above the 5-day moving average (red – 1.6212), or will the bears utilize this area in the market to try and regain control?
The March 2010 Canadian Dollar futures contract (see chart below) shows that the bears were able to pierce last Friday’s low, but were unable to make any real headway. I would like to point out that the 5-day moving average (red – .9484) might be an area the bears try to maintain control at over the next coming day, which in my opinion makes this short-term moving average a pivotal area of technical resistance.
The March 2010 Euro Currency was like watching paint dry. The daily chart (below) shows that the Euro Currency traded very close to the 5-day moving average (the average today was 1.4151) for most of the session and for nearly 4.5 hours the Euro Currency had a .0022 tick range. Like I said, “watching paint dry.” The question now is this pause just an opportunity to get short, or will we the market jump looking to trap weak longs?
The daily chart of the March 2010 Japanese Yen futures contract (see chart below) shows that the bulls seemed to have relaxed today, maybe looking to regroup in the vicinity of the 5-day moving average (red – 1.1069). This average may be the area of support bulls look to get long from, so I will consider this area a pivotal area of technical support.
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There is significant risk of financial loss in trading futures and trading futures is not suitable for everyone. You should carefully consider whether such an investment is right for you in light of your financial condition.
