Currency Futures Trading Currency Futures Recap 1/21/10
Posted by: Richard Estrada // Category: Currency Futures Trading
Once again the currency futures market didn’t disappoint if you like big volatile days. The British Pound and Canadian Dollar continued to slide in today’s action, while the Euro Currency seemed to have established an area of technical support. The Japanese Yen on the other hand exploded to the upside like a rocket headed to the moon.
The March 2010 British Pound futures contract (see chart below) shows that the bears were in control today pushing the market all the way down to the 25-day moving average (blue – 1.6114).
The question for currency traders day trading futures, specifically the British Pound futures is; will the bulls hold the line in the vicinity of the 25-day moving average (1.6114), or are the bear going to once again make another downward push going into Friday?
Like the British Pound the March 2010 Canadian Dollar (see daily chart below) also fell lower, but so far the bulls have been able to hold the line in the vicinity of the 75-day moving average (green – .9514).
Will this area be an opportunity for bulls to go long, or is this pause a short-term pause before crashing on Friday?
The March 2010 Euro Currency futures contract (see chart below) fell once again in early trading, but was able to establish an area of technical support just above the 52-week moving average (green – 1.4012).
The question for currency futures traders tonight is will the double bottom intra-day low (see eurocurrency.currencyfuturestrading.net) at 1.4027 be a viable area from which to take long positions from, or is this a potential trap door?
The daily chart of the March 2010 Japanese Yen futures contract (see chart below) clearly shows that Japanese Yen exploded to the upside after piercing the 25-day moving average (blue – 1.0928).
You will also notice that the Japanese Yen ran right into the 75-day moving average (green – 1.1099) before closing at 1.1060. Will the bulls be able to make a run at this area, or will the bulls counter and attempt to push the Japanese Yen back below the 5-day moving average?
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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.