Currency Futures Trading: A Weekly Technical Preview 2/28/10
Posted by: Richard Estrada // Category: Currency Futures Trading
Currency Traders witnessed large volatility in the currency futures market in the month of February 2010. The question for currency traders going into the month of March is will see the same kind of large swings and extreme short-term volatility, or will currency futures trading this month be a little more subdued? The only honest answer to that question is we will just have to wait and see.
The weekly chart of the British Pound Futures (see chart below) shows that since breaking out of a bear flag formation (outlined by black trend lines) the bears have been in total control. You will also notice that the 4-week moving average (red) has been a pivotal area of technical resistance and in my opinion an area to watch in you are looking for a reversal.
The weekly chart of the Canadian Dollar Futures (see chart below) shows that this market is trading right at the 13-week moving average (blue), which has been a pivotal area of technical support since the bulls were able to push the market above the 52-week moving average (green) back in April of last year. The question for currency traders this week is will the bulls be able to make another upward push, or will the bears look to make a move?
The weekly chart of the Euro Currency Futures (see chart below) shows that the Euro Currency has found technical support in the vicinity of the 61.8% fibonacci retracement line (1.3482). You will also notice that the Euro Currency is trading right at the 4-week moving average (red – 1.3615), which in my opinion will be a pivotal technical area and a good gauge of technical momentum this week.
The weekly chart of the Japanese Yen Futures (see chart below) shows that the market is swinging hard above and below both the 4 (red) and 13-week (blue) moving averages. With the Japanese Yen Futures currently trading above these averages, then I interpret this market as technically bullish, but a break back below these average and we could see an agreesive sell-off at least over the short-term.
If you would like to talk about my strategic analysis in further detail, simply schedule a Private Presentation. And Discover the Potential of Day Trading Futures and determine for yourself if it’s worth the Financial Risk.
Opinions expressed are subject to change without notice. I make no promises or guarantees implied or otherwise that utilizing short-term trading strategies will result in profits or limited losses. There is significant risk of financial loss in trading futures; therefore you should carefully consider whether trading futures is right for you in light of your financial condition
Tags: British Pound futures, Canadian Dollar futures, Currency Futures Trading, day trading futures, Euro Currency futures, Japanese Yen futures
