Currency Futures Trading: Day Trading Futures Recap 2/22/10
Posted by: Richard Estrada // Category: Currency Futures Trading
Day Traders day trading futures, specifically currency futures were given somewhat of a respite today. Remember, we have seen some extreme short-term volatility over the last week, so today compared to last week’s volatility was quite small. The question currency traders are asking now is which way do we go from here? Let’s take a closer at the individual currency markets and try to determine pivotal battle lines for tonight and tomorrow.
The daily chart of the March 2010 British Pound Futures contract (see chart below) clearly shows a smaller range then we saw last Friday, and also notice that today’s upward move ran into technical resistance just below the 5-day moving average (red – 1.5523). This average might be a good gauge of technical momentum and I suspect an area bears might try to defend.
The daily chart of the March 2010 Canadian Dollar Futures contract (see chart below) shows that the market held above the 5-day moving average (red – .9580) today, but will the bulls be able to hold this area tonight? In my technical opinion, this average might be a good gauge of technical momentum tonight and tomorrow.
The daily chart of the March 2010 Euro Currency Futures contract (see chart below) shows that the bulls were able to pierce the 5-day moving average (red – 1.3585) today, but by the close the bears were pushing back. Like the British Pound and Canadian Dollar the 5-day moving average is a technical area to watch tonight.
The daily chart of the March 2010 Japanese Yen Futures contract (see chart below) shows that the Japanese Yen had a nice pop nice today and is currency holding above the 5-day moving average (red – 1.0943). If the bulls can hold this area, then we might see a test of the 25-day moving average (blue – 1.1077). A break below this average and we might see the bears make a move towards last week’s low (1.0927).
If you would like to talk about my 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