Currency Futures Trading A Day in Review 1/14/09
Posted by: Richard Estrada // Category: Currency Futures TradingThe Currency Futures Market continues to be an exciting arena for the savvy investor/trader. The British Pound, Canadian Dollar and Japanese Yen futures continue to push upward, while the Euro Currency seems to be on the technical defensive.
The daily chart of the March 2010 British Pound Futures Contract shows that the bulls were able to push this market above the last cycle high of 1.6229. You can also see that the 5-day moving average (red – 1.6238) has crossed above the 25-day moving average (blue – 1.6117), which is considered technically bullish (see chart below). I would also like to point out that the British Pound has pierced the 75-day moving average (green – 1.6302), which is another indication of technical strength.
The daily chart of the March 2010 Canadian Dollar (see chart below) shows that the Canadian Dollar has reversed direction and climbed back above the 5-day moving average (red – .9705), which I will consider a pivotal area of technical support. The question now is will we see the bulls make a push at the cycle high of .9792, or was today’s session high (.9780) the 2nd part of a double top high?
The daily chart of the March 2010 Euro Currency Futures Contract (see chart below) shows that the Euro Currency has broken back below both the 5 (red – 1.4484) and 25 (blue – 1.4426) day moving averages, which is considered technically bearish. These moving averages will now be considered pivotal areas of technical resistance and or good gauges of technical strength.
The daily chart of the Japanese Yen Futures Contract (see chart below) illustrates that the Japanese Yen is currently trading just above both the 5 (red – 1.0950) and 25 (blue – 1.0969) day moving averages. In my opinion, these moving averages will be good gauges of technical strength in tonight and tomorrow’s session.
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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.
