Currency Futures Trading Day Trader’s Review Tues. 2/2/10
Posted by: Richard Estrada // Category: Currency Futures Trading
Day Trader’s day trading in the currency futures market have gotten somewhat of a respite from last week’s large swings. The British Pound, Canadian Dollar and Euro Currency seem to be stabilizing, though these markets might just be a pausing, rather then a real reversal. The Japanese Yen on the other hand has pulled back and is currently trading just above a pivotal area of technical support.
Let’s take a look at each currency futures market and try to determine pivotal area of technical support and resistance. The daily chart of the March 2010 British Pound futures contract (see chart below) shows that the bulls were able to rally the market from Monday’s low (1.5845), which was just above the 52-week moving average (1.5839).
Now the question for currency trader’s day trading futures, specifically the British Pound is can the bulls run the market pass the 5-day moving average (red – 1.6005), which in my opinion is a pivotal area of technical resistance? Or are the bears going hold the line and once again test this week’s low (1.5845)?
The daily chart of the March 2010 Canadian Dollar futures contract (see chart below) shows that the bulls were able to push this market back above the 5-day moving average (red – .9411) and appear poised to make a run at the 75-day moving average (green – .9488). Can the bulls muster up enough technical strength, or is this move more about bears taking some profits and looking to reenter the market at a better price?
The March 2010 Euro Currency futures contract did finally get back above the 5-day moving average (red – 1.3940), which has been a pivotal area of technical resistance for the last two weeks (see chart below).
The question now is are the bulls looking to make a push at the 52-week moving average (1.4050), or are the bears ready to make another downward push?
The March 2010 Japanese Yen futures contract (see chart below) is currently consolidating between both the 25-day moving average (blue – 1.0972) and the 5-day moving average (red – 1.1071). The question for currency futures trader’s is are we in a short-term pause in a prevailing upward trend, or is the market in a short-term pause in a prevailing downward trend?
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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.