Currency Futures Trading Currency Futures Review 1/19/10
Posted by: Richard Estrada // Category: Currency Futures Trading
Currency Traders speculating in the most aggressive markets in the world once again saw some rather large moves in the currency futures market. For instance the March 2010 British Pound futures contract pushed to a session high of 1.6454 before falling over a .0150 ticks to a low of 1.6306 (see chart below).
The question for currency day traders speculating in the British Pound market is, will the bulls be able to hold the line at the 5-day moving average (red – 1.6311), or are the bears in position to make a downward push?
Unlike the British Pound the Canadian Dollar made no upward push, but opened (.9746) near the session high (9756) and fell from there. The daily chart of the March 2010 Canadian Dollar futures contract (see chart below) shows that the bears were once again able to break below the 5-day moving average (red – .9727). This average in my technical opinion will be a gauge of technical strength in and tomorrow’s trading session.
The daily chart of the March 2010 Euro Currency futures contract (see chart below) illustrates a break below a bear-flag technical formation (outlined by black trendlines). For currency trader’s day trading the Euro Currency Futures Contract the question tonight and tomorrow will be a simple one in my opinion; are the bears in control and is this sell-off the beginning of the second leg of this downtrend, or was this move after a long holiday weekend a strategic play to take out weak longs?
The Japanese Yen like all the other currencies tumbled from the session high of 1.1076. You can see by looking at the daily chart of the March 2010 Japanese Yen futures contract (see chart below) that not only did this market tumble Tuesday, but the bears were able to close the market below the 5-day moving average (red – 1.0990). Is today’s close a bearish indication or just an opportunity to buy the Japanese Yen?
To get up to the minute strategic analysis and a unique perspective in the Currency Futures Market simply join me in my LIVE TRADING ROOM. I will break down the Currency Futures Market in unbelievable detail and across multiple time frames. If you are serious about currency futures trading and want a no nonsense approach to the most aggressive markets in the world then simply join me in my LIVE TRADING ROOM.
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.